Protagonist Therapeutics Inc (PTGX)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 12.48 | 16.71 | 7.61 | 7.74 | 7.84 |
| Quick ratio | 8.84 | 16.06 | 7.61 | 7.43 | 7.60 |
| Cash ratio | 8.84 | 16.06 | 7.61 | 7.43 | 7.60 |
Protagonist Therapeutics Inc has consistently exhibited strong liquidity ratios over the years, as seen in its current ratio, quick ratio, and cash ratio.
The current ratio measures the company's ability to cover its short-term obligations with its current assets. Protagonist's current ratio has remained above 7.0 in recent years, indicating a healthy liquidity position. The ratio decreased slightly from 7.84 in 2020 to 7.61 in 2022 but then significantly increased to 16.71 in 2023 before settling at 12.48 in 2024. This upward trend suggests that the company has ample current assets to meet its short-term liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects strong liquidity for Protagonist. The quick ratio ranged between 7.43 and 8.84 during the period under review, remaining at comfortable levels above 1.0. This indicates that the company can meet its immediate financial obligations without relying on inventory.
The cash ratio, which only considers cash and cash equivalents in relation to current liabilities, further emphasizes Protagonist's liquidity strength. The cash ratio mirrored the quick ratio's trend, demonstrating the company's ability to cover its short-term liabilities purely with cash and equivalents.
Overall, Protagonist Therapeutics Inc's liquidity ratios show a consistently robust financial position, with sufficient current assets and cash to meet its short-term obligations comfortably.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 1,118.41 | 0.00 |
Protagonist Therapeutics Inc experienced a significant increase in its cash conversion cycle from 0.00 days in December 31, 2020 to 1,118.41 days in December 31, 2021. This indicates that the company takes considerably longer to convert its investments in inventory and other resources into cash receipts from customers. The subsequent years, including December 31, 2022, 2023, and 2024, have shown a return to a more efficient cash conversion cycle with 0.00 days, suggesting improved management of working capital and a more streamlined operational process. The company should continue monitoring and managing its cash conversion cycle efficiently to ensure optimal liquidity and operational performance.