Regenxbio Inc (RGNX)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	34,522	53,045	68,600	70,091	96,952	118,544	121,374	191,873	345,209	228,387	257,072	291,482	338,426	93,220	94,222	69,411	69,514	79,594	55,142	55,852
Short-term investments	US$ in thousands	279,578	311,455	346,800	403,409	468,248	498,456	560,626	572,927	504,091	305,113	335,928	365,018	184,074	196,580	244,978	287,189	330,486	337,506	394,558	388,448
Total current liabilities	US$ in thousands	130,272	127,346	117,893	112,334	130,434	123,548	114,556	119,937	130,472	106,771	91,554	83,961	81,447	63,613	40,203	31,789	33,676	31,345	24,661	21,390
Cash ratio		2.41	2.86	3.52	4.22	4.33	4.99	5.95	6.38	6.51	5.00	6.48	7.82	6.42	4.56	8.44	11.22	11.88	13.31	18.24	20.77

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($34,522K + $279,578K) ÷ $130,272K
= 2.41

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash available to cover its current obligations.

Analyzing Regenxbio Inc's cash ratio over the past eight quarters, we observe a fluctuating trend. The cash ratio ranged from 2.38 in Q4 2023 to 3.74 in Q2 2022. This variability suggests that the company's liquidity position has been dynamic over the period under review.

In Q1 and Q2 of 2022, Regenxbio Inc had its highest cash ratios of 3.50 and 3.74, respectively, indicating a robust ability to cover short-term obligations with its cash holdings during those quarters. Conversely, the company experienced a decline in its cash ratio in later quarters, reaching its lowest point of 2.38 in Q4 2023.

While a high cash ratio signifies a stronger liquidity position, it is essential to consider the industry norms and the company's specific operating requirements when evaluating the adequacy of its cash reserves. Therefore, further assessment of Regenxbio Inc's overall financial health and cash management practices is recommended to gain a comprehensive understanding of its liquidity position.