Penumbra Inc (PEN)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 324,404 280,476 288,332 223,114 167,486 100,757 114,167 94,688 69,858 54,844 58,234 68,163 59,379 66,290 82,277 55,632 69,670 80,115 134,381 72,456
Short-term investments US$ in thousands 15,727 10,548 51,363 90,360 121,701 148,098 106,896 104,409 118,172 129,583 146,135 172,178 195,496 200,637 156,722 186,977 195,162 188,611 143,914 95,766
Total current liabilities US$ in thousands 158,345 153,185 150,994 152,803 151,144 145,078 144,124 146,328 144,932 138,332 145,604 130,099 123,197 116,059 108,046 111,862 105,932 108,055 77,612 88,074
Cash ratio 2.15 1.90 2.25 2.05 1.91 1.72 1.53 1.36 1.30 1.33 1.40 1.85 2.07 2.30 2.21 2.17 2.50 2.49 3.59 1.91

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($324,404K + $15,727K) ÷ $158,345K
= 2.15

The cash ratio of Penumbra Inc, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

Initially, in March 2020, the cash ratio was 1.91, indicating that the company had $1.91 in cash and cash equivalents for every dollar of current liabilities. This ratio increased to 3.59 by June 2020, reflecting a significant improvement in the company's liquidity position.

Subsequently, the cash ratio decreased to 2.49 by September 2020 but remained relatively stable around 2.5 until December 2020. Over the next few quarters, the ratio fluctuated within a range of 2.07 to 2.30, suggesting that the company maintained a healthy level of liquidity to meet its short-term obligations.

However, starting from March 2022, the cash ratio began to decline consistently, reaching a low of 1.30 by December 2022. This downward trend continued until June 2024, with the ratio dropping to 1.40, signifying a potential strain on the company's ability to cover its short-term liabilities solely with its cash reserves.

The cash ratio slightly improved to 1.72 by September 2023 and further increased to 2.15 by December 2024. While the ratio showed some recovery in the latter part of the period, it is essential for Penumbra Inc to closely monitor its liquidity position to ensure it has an adequate cash buffer to meet its financial obligations in the short term.