Penumbra Inc (PEN)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	324,404	167,486	69,858	59,379	69,670
Short-term investments	US$ in thousands	15,727	121,701	118,172	195,496	195,162
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	158,345	151,144	144,932	123,197	105,932
Quick ratio		2.15	1.91	1.30	2.07	2.50

December 31, 2024 calculation

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

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Penumbra Inc's quick ratio has shown some fluctuations over the years.

As of December 31, 2020, the quick ratio stood at a healthy 2.50, indicating that the company had $2.50 in liquid assets available to cover each dollar of its current liabilities.

By December 31, 2021, the quick ratio had decreased to 2.07, which is still considered quite strong, showing that the company had $2.07 in quick assets to cover each dollar of current liabilities.

However, by December 31, 2022, the quick ratio had decreased further to 1.30, raising some concerns about the company's ability to meet its short-term obligations using its liquid assets.

The quick ratio improved by December 31, 2023, reaching 1.91, suggesting a slight recovery in the company's liquidity position.

As of December 31, 2024, the quick ratio improved further to 2.15, showing that Penumbra Inc had $2.15 in quick assets for every dollar of current liabilities, indicating a stronger liquidity position compared to the previous year.

Overall, while there have been fluctuations in Penumbra Inc's quick ratio over the years, the company generally maintained a healthy liquidity position, with the ratio consistently above 1.0, indicating its ability to meet short-term obligations with its liquid assets.