Supernus Pharmaceuticals Inc (SUPN)

The liquidity ratios of Supernus Pharmaceuticals Inc show fluctuations over the years.

1. Current Ratio:

- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 2.57 in 2020 to 1.91 in 2021, indicating a slight decline in liquidity.
- However, there was a significant decrease observed in 2022, with the current ratio dropping to 1.07, suggesting potential challenges in meeting short-term obligations.
- There was an improvement in liquidity in 2023, as the current ratio increased to 1.70, showing a better ability to cover short-term liabilities.
- Furthermore, the current ratio improved further in 2024, reaching 2.35, indicating a stronger liquidity position compared to the previous year.

2. Quick Ratio:

- The quick ratio, also known as the acid-test ratio, provides a stricter measure of liquidity by excluding inventory from current assets.
- The quick ratio followed a similar trend to the current ratio, declining from 2.30 in 2020 to 1.55 in 2021, reflecting a decrease in liquidity.
- In 2022, there was a substantial drop in the quick ratio to 0.91, signaling potential difficulties in covering short-term obligations without relying on inventory.
- The quick ratio improved in 2023 to 1.38, indicating a better ability to meet short-term liabilities without relying heavily on inventory.
- In 2024, there was a further improvement in liquidity as the quick ratio increased to 2.04, suggesting a stronger position to meet short-term obligations without relying on inventory.

3. Cash Ratio:

- The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, exhibited a fluctuating pattern over the years.
- The cash ratio decreased from 1.72 in 2020 to 1.08 in 2021, indicating a slight decline in the company's ability to cover short-term obligations with cash on hand.
- There was a more significant decrease observed in 2022, with the cash ratio dropping to 0.67, suggesting potential challenges in meeting short-term liabilities with available cash.
- The cash ratio improved in 2023 to 0.88, showing a better ability to cover short-term obligations with cash and cash equivalents.
- In 2024, there was a further improvement in the cash ratio, reaching 1.55, indicating a stronger position in terms of liquidity with available cash.

Overall, while the company experienced fluctuations in its liquidity ratios over the years, there were improvements in the liquidity position in 2023 and 2024 compared to 2022, indicating a better ability to meet short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Supernus Pharmaceuticals Inc has shown fluctuations over the past five years. It increased from 162.44 days on December 31, 2020, to 170.20 days on December 31, 2021. However, in the subsequent years, the cycle decreased significantly to 153.00 days on December 31, 2022, followed by a dramatic drop to 86.61 days on December 31, 2023. The cycle increased slightly to 123.50 days on December 31, 2024.

Overall, there seems to be a positive trend in managing the cash conversion cycle more efficiently in recent years, with a notable improvement in 2023. These changes may indicate better management of inventory, receivables, and payables, leading to a more streamlined cash flow process for the company. It's important for Supernus Pharmaceuticals Inc to continue monitoring and optimizing its cash conversion cycle to ensure effective working capital management and overall financial health.