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.
Peer comparison
Dec 31, 2023