Supernus Pharmaceuticals Inc (SUPN)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.70 | 1.07 | 1.91 | 2.57 | 2.94 |
| Quick ratio | 0.88 | 0.91 | 1.55 | 2.30 | 2.71 |
| Cash ratio | 0.88 | 0.67 | 1.08 | 1.72 | 2.16 |
Supernus Pharmaceuticals Inc's liquidity ratios demonstrate fluctuations over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown variability ranging from 1.07 to 2.94. In 2023, the current ratio stands at 1.70, indicating an improvement compared to the previous year.
The quick ratio, a more stringent measure as it excludes inventory from current assets, also displays fluctuations for Supernus Pharmaceuticals Inc. Ranging from 0.93 to 2.78, the quick ratio for 2023 is at 1.43, suggesting an increase from the previous period.
Examining the cash ratio, which assesses the company's ability to cover short-term liabilities with its cash and cash equivalents, Supernus Pharmaceuticals Inc's performance has also varied. The cash ratio ranges from 0.69 to 2.23, with the 2023 ratio at 0.94 indicating that the company has increased its cash reserves compared to the prior year.
Overall, while Supernus Pharmaceuticals Inc has experienced fluctuations in its liquidity ratios over the past five years, the company's current, quick, and cash ratios for 2023 suggest improved liquidity position compared to the previous year. Maintaining a strong liquidity position is crucial for the company to meet its short-term obligations and withstand unforeseen financial challenges.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 153.00 | 170.20 | 162.44 | 115.24 |
The cash conversion cycle of Supernus Pharmaceuticals Inc has shown fluctuations over the past five years. In 2023, it decreased to 415.30 days from 429.49 days in 2022, indicating an improvement in the company's efficiency in converting its inventory and receivables into cash. However, compared to 2020 when it was 392.28 days, the cycle has increased in 2023, suggesting a potential lengthening in the company's cash conversion process.
Despite these fluctuations, the company's cash conversion cycle in 2023 remains lower than in 2021 and 2019, indicating a relatively stronger position in managing its working capital. Overall, monitoring the cash conversion cycle closely can provide insights into how effectively Supernus Pharmaceuticals Inc is managing its liquidity and working capital to support its operations and growth.