Regenxbio Inc (RGNX)

Regenxbio Inc's liquidity ratios have exhibited a decreasing trend over the past five years. The current ratio, which compares current assets to current liabilities, decreased from 10.25 in 2019 to 2.57 in 2023. This indicates a potential weakening in the company's ability to cover its short-term liabilities with its current assets.

Similarly, the quick ratio, which excludes inventory from current assets, also experienced a downward trend from 10.25 in 2019 to 2.57 in 2023. This suggests a reduction in the company's ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which measures the firm's ability to cover its current liabilities with its cash and cash equivalents, also declined from 9.11 in 2019 to 2.38 in 2023. This indicates a diminishing capacity for Regenxbio Inc to pay off its short-term debts solely with its available cash resources.

Overall, the decreasing trend in Regenxbio Inc's liquidity ratios suggests a potential deterioration in its short-term financial health and liquidity position over the past five years. Investors and stakeholders may need to closely monitor the company's liquidity management strategies and operational efficiency to ensure its ability to meet its financial obligations in the future.

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Additional liquidity measure

The cash conversion cycle of Regenxbio Inc has shown a notable trend over the past five years. In 2023, the company's cash conversion cycle stood at -123.23 days, indicating a significant improvement compared to the previous year where it was -91.17 days. This negative number implies that Regenxbio is efficiently managing its cash inflows and outflows in the operational cycle.

Looking back at 2021, the cash conversion cycle was -58.63 days, showing a positive trend from the year 2020 where it was 12.80 days. This indicates that the company has been able to speed up its cash conversion process, possibly through better management of accounts receivable, inventory, and accounts payable.

In contrast, in 2019, the cash conversion cycle was 111.34 days, signifying a period where Regenxbio faced challenges in converting its investments into cash. However, the subsequent years reflect a significant improvement in this regard.

Overall, the trend in Regenxbio Inc's cash conversion cycle suggests a positive development in the company's working capital management efficiency over the past five years, contributing to potential improvements in liquidity and overall financial health.