Regeneron Pharmaceuticals Inc (REGN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,730,000	3,105,900	2,885,600	2,193,700	1,617,800
Short-term investments	US$ in thousands	8,114,800	4,636,400	2,809,100	1,393,300	1,596,500
Total current liabilities	US$ in thousands	3,423,400	3,141,300	3,932,500	2,697,400	2,096,600
Cash ratio		3.17	2.46	1.45	1.33	1.53

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,730,000K + $8,114,800K) ÷ $3,423,400K
= 3.17

The cash ratio of Regeneron Pharmaceuticals, Inc. has shown a consistent upward trend over the last five years, indicating an improvement in the company's ability to cover its short-term liabilities with its available cash.

As of December 31, 2023, the cash ratio stands at 3.28, indicating that for every $1 of current liabilities, Regeneron Pharmaceuticals, Inc. holds $3.28 in cash and cash equivalents. This signifies a strong liquidity position and suggests that the company has a significant buffer of cash to meet its immediate obligations without relying on external sources of funding.

The increasing trend in the cash ratio from 2019 to 2023 reflects Regeneron Pharmaceuticals, Inc.'s effective cash management strategies, which have likely resulted in the accumulation of sufficient liquid assets to weather potential financial challenges and seize investment opportunities. This upward trend in the cash ratio is a positive signal for investors and creditors, as it implies a reduced risk of insolvency and improved financial stability for the company.