Pacira Pharmaceuticals Inc (PCRX)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	153,298	99,119	86,810	35,545	104,139	109,424	122,061	226,751	585,578	134,036	105,774	66,699	99,957	125,244	78,552	54,589	78,228	85,139	59,737	215,036
Short-term investments	US$ in thousands	125,283	136,069	133,956	138,454	184,512	219,301	194,332	225,443	70,831	559,822	540,821	523,364	421,705	406,881	248,240	263,875	213,722	180,505	232,502	197,406
Receivables	US$ in thousands	105,556	96,956	99,079	93,205	98,397	93,471	91,105	92,103	96,318	49,975	68,357	52,583	53,046	46,143	44,013	38,988	47,530	42,573	41,147	39,766
Total current liabilities	US$ in thousands	97,383	93,661	108,912	98,698	147,774	131,526	133,179	305,073	521,118	225,788	228,693	232,084	253,328	86,272	70,583	80,313	107,673	95,838	83,004	58,991
Quick ratio		3.94	3.55	2.94	2.71	2.62	3.21	3.06	1.78	1.44	3.29	3.13	2.77	2.27	6.70	5.25	4.45	3.15	3.22	4.02	7.67

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 meet its short-term obligations with its most liquid assets excluding inventory.

Looking at the trend in Pacira BioSciences Inc's quick ratio over the past eight quarters, we observe a fluctuating pattern. The quick ratio has shown an upward trend from Q1 2022 to Q1 2023, indicating an improvement in the company's short-term liquidity position during this period.

Specifically, the quick ratio increased from 1.85 in Q1 2022 to 2.87 in Q1 2023. This reflects that in Q1 2023, Pacira BioSciences Inc had $2.87 in liquid assets available to cover each dollar of its current liabilities, implying a stronger ability to meet its short-term obligations.

While the quick ratio dipped slightly in Q2 2023 and Q3 2023, it remained above 3.0, indicating a healthy level of liquidity. Notably, in Q4 2023, the quick ratio spiked to 4.17, demonstrating a substantial increase in the company's ability to pay off its short-term obligations with its quick assets.

Overall, the trend in Pacira BioSciences Inc's quick ratio suggests that the company has managed its short-term liquidity effectively, with a generally improving liquidity position over the period analyzed.