Protagonist Therapeutics Inc (PTGX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	186,727	125,744	123,665	117,358	33,006
Short-term investments	US$ in thousands	154,890	111,611	203,235	188,500	100,011
Total current liabilities	US$ in thousands	21,274	31,179	44,016	40,241	35,406
Cash ratio		16.06	7.61	7.43	7.60	3.76

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($186,727K + $154,890K) ÷ $21,274K
= 16.06

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.

Over the past five years, Protagonist Therapeutics Inc has shown a consistent improvement in its cash ratio, indicating a strengthening liquidity position. As of December 31, 2023, the company's cash ratio stands at 16.06, indicating that for every $1 of current liabilities, the company has $16.06 in cash and cash equivalents available to cover those obligations.

This significant increase from the previous years, where the cash ratio ranged from 3.76 to 7.61, suggests that Protagonist Therapeutics Inc has significantly bolstered its liquidity position and is better equipped to meet its short-term obligations. This trend is a positive signal for the company's financial health and indicates a prudent approach to managing its cash resources.