Sarepta Therapeutics Inc (SRPT)

Sarepta Therapeutics Inc's liquidity ratios show a favorable trend over the years, indicating the company's ability to meet short-term obligations and maintain operational efficiency. The current ratio, which measures the company's ability to cover its current liabilities with current assets, has slightly decreased from 5.97 in 2020 to 4.20 in 2024. Despite the slight decrease, the current ratio remains well above 1, suggesting that Sarepta is in a strong position to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend from 4.66 in 2020 to 1.85 in 2024. This decline indicates that Sarepta may have less liquid assets available to cover immediate liabilities without relying on inventory.

Lastly, the cash ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents, has followed a similar downward trend from 4.66 in 2020 to 1.85 in 2024. While the cash ratio has decreased over the years, it is important to note that maintaining a cash ratio above 1 signifies that Sarepta has sufficient cash reserves to meet its short-term obligations.

Overall, Sarepta Therapeutics Inc's liquidity ratios depict a strong financial position, with the company maintaining a healthy level of liquidity to support its operations and financial obligations. It is essential for the company to continue monitoring and managing its liquidity effectively to sustain its financial stability.

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Additional liquidity measure

The cash conversion cycle of Sarepta Therapeutics Inc has shown fluctuations over the years from 2020 to 2024. In 2020, the company had a significantly long cash conversion cycle of 1,335.80 days, indicating a slower conversion of investments in inventory and receivables into cash. The following year, the cycle improved to 700.34 days, suggesting more efficient management of working capital.

By the end of 2022, the cycle further reduced to 531.82 days, reflecting an even better position in terms of managing cash inflows and outflows. However, in 2023, there was a slight increase in the cash conversion cycle to 783.83 days, indicating some challenges that may have impacted the company's ability to efficiently convert its investments into cash.

By the end of 2024, the cycle increased slightly to 857.84 days compared to the previous year, which might raise concerns about the company's efficiency in managing working capital. Overall, Sarepta Therapeutics Inc has experienced fluctuations in its cash conversion cycle over the years, highlighting the importance of closely monitoring and improving working capital management practices.