Sarepta Therapeutics Inc (SRPT)

The liquidity ratios of Sarepta Therapeutics Inc, namely the current ratio, quick ratio, and cash ratio, indicate the company's ability to meet its short-term financial obligations.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has been consistently healthy over the past five years, ranging from 3.95 to 5.97. This indicates that Sarepta Therapeutics Inc has a strong ability to meet its current liabilities with 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. Sarepta Therapeutics Inc's quick ratio has also been robust, ranging from 3.18 to 5.01 over the same period, suggesting that the company has an ample cushion to cover its short-term obligations without relying on selling inventory.

- The cash ratio, which is the most conservative liquidity measure, focuses solely on a company's ability to cover its current liabilities with cash and cash equivalents. Sarepta Therapeutics Inc's cash ratio has remained solid, ranging from 2.56 to 4.67, indicating that the company maintains a significant level of liquid assets to meet its short-term liabilities without relying on other current assets.

In summary, Sarepta Therapeutics Inc's liquidity ratios reflect a consistent and strong liquidity position over the past five years, suggesting that the company is well-equipped to meet its short-term financial obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of Sarepta Therapeutics Inc has shown varying trends over the past five years. In 2023, the cash conversion cycle increased to 230.53 days from 172.03 days in 2022, indicating that the company took longer to convert its investments in inventory and receivables into cash during the year. This increase may reflect challenges in efficiently managing working capital and converting sales into cash.

Comparing to prior years, the cash conversion cycle in 2023 was higher than in 2021 but slightly lower than in 2019 and 2020. This fluctuation suggests that Sarepta Therapeutics may be facing difficulties in optimizing its processes related to inventory management, accounts receivable collection, and payables management.

Overall, a higher cash conversion cycle implies that the company is tying up more capital in its operations, potentially impacting liquidity and overall financial performance. It would be prudent for Sarepta Therapeutics management to focus on streamlining working capital processes to improve efficiency and enhance cash flow management.