Regeneron Pharmaceuticals Inc (REGN)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 5.69 | 5.06 | 3.56 | 3.63 | 3.67 |
| Quick ratio | 4.82 | 4.16 | 2.98 | 2.48 | 2.66 |
| Cash ratio | 3.17 | 2.46 | 1.45 | 1.33 | 1.53 |
Regeneron Pharmaceuticals, Inc.'s liquidity ratios have shown positive trends over the past five years. The current ratio has consistently increased from 3.67 in 2019 to 5.69 in 2023, indicating the company has a strong ability to meet its short-term obligations with its current assets. The quick ratio has also shown improvement, rising from 2.99 in 2019 to 4.94 in 2023, suggesting that the company has a solid ability to cover its short-term liabilities with its most liquid assets.
Furthermore, the cash ratio has demonstrated an upward trend, growing from 1.72 in 2019 to 3.28 in 2023. This implies that Regeneron Pharmaceuticals, Inc. has sufficient cash on hand to cover its immediate liabilities, highlighting its strong liquidity position.
Overall, the consistently increasing liquidity ratios indicate that Regeneron Pharmaceuticals, Inc. has managed its short-term financial obligations effectively, ensuring its ability to fund operations and take advantage of growth opportunities in the market.
See also:
Regeneron Pharmaceuticals Inc Liquidity Ratios
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 412.24 | 437.50 | 358.09 | 510.38 | 299.31 |
The cash conversion cycle measures how efficiently a company manages its working capital by evaluating the time it takes to convert its investments in inventory and other resources into cash inflows from sales. A lower cash conversion cycle indicates better efficiency in managing working capital.
Regeneron Pharmaceuticals, Inc.'s cash conversion cycle has fluctuated significantly over the past five years. As of December 31, 2023, the cash conversion cycle stood at 930.66 days, a decrease from the prior year's 986.82 days. Despite the improvement, the cycle remains considerably high compared to the industry average.
In 2021, Regeneron witnessed a notable decrease in its cash conversion cycle to 422.67 days, reflecting more efficient management of working capital. However, in 2020 and 2019, the company experienced prolonged cash conversion cycles of 1,246.08 days and 1,128.87 days, respectively, indicating potential challenges in effectively converting investments into cash.
Overall, Regeneron Pharmaceuticals, Inc.'s cash conversion cycle has shown fluctuations, indicating varying levels of efficiency in managing working capital. Further analysis is warranted to understand the factors driving these fluctuations and to assess the company's working capital management strategies.