Protagonist Therapeutics Inc (PTGX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	—	3,852	5,333	3,821	7,499
Total current liabilities	US$ in thousands	21,274	31,179	44,016	40,241	35,406
Quick ratio		16.06	7.74	7.55	7.70	3.97

December 31, 2023 calculation

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

The quick ratio of Protagonist Therapeutics Inc has shown a generally increasing trend over the past five years, indicating an improvement in the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio has increased from 3.97 in 2019 to 16.06 in 2023. This suggests that the company has significantly more current assets that can be quickly converted into cash to cover its current liabilities.

A quick ratio above 1 indicates that a company has an adequate level of liquid assets to cover its short-term liabilities. Protagonist Therapeutics Inc's quick ratio has consistently been well above 1 over the years, reflecting a strong liquidity position.

The increase in the quick ratio from 2019 to 2023 may indicate effective management of working capital, improved cash flow management, or increased cash reserves. Investors and creditors generally view a high quick ratio positively as it signifies a company's ability to handle its financial obligations without relying heavily on selling inventory or obtaining additional financing.

Overall, the upward trend in Protagonist Therapeutics Inc's quick ratio indicates a healthy liquidity position and a lower risk of financial distress in meeting its short-term obligations.