Pacira Pharmaceuticals Inc (PCRX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	153,298	104,139	585,578	99,957	78,228
Short-term investments	US$ in thousands	125,283	184,512	70,831	421,705	213,722
Receivables	US$ in thousands	105,556	98,397	96,318	53,046	47,530
Total current liabilities	US$ in thousands	97,383	147,774	521,118	253,328	107,673
Quick ratio		3.94	2.62	1.44	2.27	3.15

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($153,298K + $125,283K + $105,556K) ÷ $97,383K
= 3.94

The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger liquidity position and suggests that the company can easily meet its short-term obligations.

For Pacira BioSciences Inc, the quick ratio has fluctuated over the past five years, as follows:

- Dec 31, 2023: 4.17
- Dec 31, 2022: 2.72
- Dec 31, 2021: 1.47
- Dec 31, 2020: 2.32
- Dec 31, 2019: 3.25

The trend indicates an improving liquidity position from 2019 to 2023, with the quick ratio consistently above 1, indicating that Pacira BioSciences Inc can cover its short-term liabilities with its quick assets. The quick ratio peaked at 4.17 in 2023, reflecting a substantial increase in liquidity compared to previous years.

Overall, the increasing trend in Pacira BioSciences Inc's quick ratio signifies a strengthening liquidity position, which suggests the company's ability to meet its short-term obligations and indicates financial stability.