Penumbra Inc (PEN)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 167,486 | 69,858 | 59,379 | 69,670 | 72,779 |
Short-term investments | US$ in thousands | 121,701 | 118,172 | 195,496 | 195,162 | 116,610 |
Total current liabilities | US$ in thousands | 151,144 | 144,932 | 123,197 | 105,932 | 91,048 |
Cash ratio | 1.91 | 1.30 | 2.07 | 2.50 | 2.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($167,486K
+ $121,701K)
÷ $151,144K
= 1.91
The cash ratio of Penumbra Inc has exhibited some fluctuations over the past five years. The ratio was 2.15 in 2023, indicating that the company had $2.15 in cash and cash equivalents for every $1 of current liabilities. This was higher than the ratio in 2022 but lower than those in 2021, 2020, and 2019, which were 1.51, 2.31, 2.68, and 2.24 respectively.
A higher cash ratio generally suggests that a company is in a better position to meet its short-term obligations using its readily available cash resources. Conversely, a lower ratio may indicate potential liquidity challenges. Therefore, Penumbra Inc's cash ratio of 2.15 in 2023 implies that the company had a relatively strong liquidity position that year. However, it is essential to consider other liquidity ratios and factors alongside the cash ratio to gain a more comprehensive understanding of the company's overall liquidity health.
Peer comparison
Dec 31, 2023