Protagonist Therapeutics Inc (PTGX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 12.48 | 10.70 | 13.73 | 15.72 | 16.71 | 11.66 | 12.01 | 10.15 | 7.61 | 7.53 | 7.59 | 7.86 | 7.74 | 8.37 | 8.65 | 8.27 | 7.84 | 5.29 | 6.15 | 3.46 |
| Quick ratio | 8.84 | 10.51 | 13.56 | 8.08 | 16.06 | 11.51 | 11.87 | 9.93 | 7.61 | 7.28 | 7.28 | 7.03 | 7.43 | 8.03 | 8.24 | 7.92 | 7.60 | 5.03 | 5.90 | 3.23 |
| Cash ratio | 8.84 | 10.51 | 13.56 | 8.08 | 16.06 | 11.51 | 11.87 | 9.93 | 7.61 | 7.28 | 7.28 | 7.03 | 7.43 | 8.03 | 8.24 | 7.92 | 7.60 | 5.03 | 5.90 | 3.23 |
Protagonist Therapeutics Inc has displayed strong liquidity positions over the analyzed periods based on its liquidity ratios.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, consistently improved from 3.46 on March 31, 2020, to a high of 16.71 on December 31, 2023. This indicates that the company had more than enough current assets to cover its current liabilities, reflecting a robust liquidity position.
Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also showed a positive trend, with values ranging from 3.23 on March 31, 2020, to a peak of 16.06 on December 31, 2023. This indicates that Protagonist Therapeutics had a strong ability to meet its short-term obligations using its most liquid assets.
The cash ratio, which gauges the company's ability to cover its current liabilities with cash and cash equivalents only, followed a similar trend to the quick ratio, reaching its highest value of 16.06 on December 31, 2023. This signifies that Protagonist Therapeutics had a substantial amount of cash reserves relative to its current liabilities, further enhancing its liquidity position.
Overall, the consistent improvement and strong levels of the current, quick, and cash ratios reflect Protagonist Therapeutics Inc's solid liquidity position and its ability to meet short-term obligations efficiently throughout the analyzed periods.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,707.68 | 3,789.49 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.32 |
The cash conversion cycle of Protagonist Therapeutics Inc has shown significant fluctuations over the years, ranging from a very low 0.00 days to exceptionally high values of 3,789.49 days and 1,707.68 days in December 31, 2021, and March 31, 2022, respectively.
A cash conversion cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales and back into cash. A shorter cycle indicates more efficient management of working capital and better liquidity for the company.
In Protagonist Therapeutics Inc's case, the sudden spike in the cash conversion cycle to 3,789.49 days in December 31, 2021, and 1,707.68 days in March 31, 2022, may suggest potential issues in managing its working capital effectively. These high values indicate that the company may be taking longer to convert its investments into cash, which could lead to cash flow challenges and liquidity issues.
It is crucial for the company to closely monitor and manage its cash conversion cycle to ensure efficient utilization of working capital, timely collection of receivables, and effective management of inventory levels. By improving this metric, Protagonist Therapeutics Inc can enhance its financial performance and optimize its cash flow generation in the long run.