Regeneron Pharmaceuticals Inc (REGN)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 4.73 | 5.69 | 5.06 | 3.56 | 3.63 |
| Quick ratio | 3.86 | 4.82 | 4.16 | 2.98 | 2.48 |
| Cash ratio | 2.28 | 3.17 | 2.46 | 1.45 | 1.33 |
Regeneron Pharmaceuticals Inc's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, demonstrate the company's ability to meet its short-term financial obligations effectively.
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a consistent and healthy trend from 2020 to 2024. The ratio ranged from 3.56 to 5.69, indicating that Regeneron Pharmaceuticals Inc has a strong ability to pay off its current liabilities using its current assets.
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Like the current ratio, the quick ratio has also displayed a positive trend over the years, ranging from 2.98 to 4.82. This indicates that the company has a strong ability to meet its short-term obligations without relying on selling inventory.
- The cash ratio, which is the most conservative liquidity metric, focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. The cash ratio has shown a steady improvement from 1.33 in 2020 to 3.17 in 2023, before dropping slightly to 2.28 in 2024. This signifies that Regeneron Pharmaceuticals Inc has a healthy level of cash reserves to settle its short-term obligations.
Overall, based on the liquidity ratios analyzed, Regeneron Pharmaceuticals Inc appears to have strong liquidity positions over the years, indicating a robust ability to manage its short-term financial commitments efficiently.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 419.78 | 412.24 | 437.50 | 358.09 | 510.38 |
The cash conversion cycle of Regeneron Pharmaceuticals Inc has shown fluctuations over the years based on the provided data. In December 2020, the cash conversion cycle was at a relatively high 510.38 days, indicating a longer time taken to convert invested resources into cash inflows. However, there has been an improvement in efficiency by December 2021, with the cycle dropping to 358.09 days. This reduction suggests the company is managing its working capital more effectively.
In the subsequent years, there was some fluctuation in the cash conversion cycle. By December 2022, the cycle increased to 437.50 days, possibly indicating a delay in the conversion of inventory to cash. However, there was a decrease to 412.24 days by December 2023, suggesting improvements in inventory turnover or receivables collection.
As of December 2024, the cash conversion cycle stood at 419.78 days. While this is slightly higher compared to the previous year, it is lower than the peak observed in December 2020. Overall, the trend in the cash conversion cycle indicates Regeneron Pharmaceuticals Inc has made efforts to manage its working capital efficiently, although there may be some variability in performance from year to year.