Penumbra Inc (PEN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	201,768	203,384	133,940	114,608	105,901
Total current liabilities	US$ in thousands	151,144	144,932	123,197	105,932	91,048
Quick ratio		3.25	2.70	3.16	3.58	3.24

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($167,486K + $121,701K + $201,768K) ÷ $151,144K
= 3.25

The quick ratio of Penumbra Inc has displayed consistency and strength over the past five years. The ratio has been above 1 in every year, indicating that the company has more than enough liquid assets to cover its current liabilities without relying on inventory.

In particular, the quick ratio has improved steadily from 2019 to 2020, reaching a peak of 3.76 in 2020 before slightly declining in the subsequent years. This suggests that Penumbra Inc has been effectively managing its short-term liquidity and has maintained a robust ability to meet its immediate financial obligations using its liquid assets.

Overall, the trend in Penumbra Inc's quick ratio indicates a healthy financial position with a strong ability to meet short-term liabilities, which could provide investors and stakeholders with confidence in the company's financial stability.