Supernus Pharmaceuticals Inc (SUPN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	75,054	93,120	203,434	288,640	181,381
Short-term investments	US$ in thousands	179,820	368,214	136,246	133,893	165,692
Total current liabilities	US$ in thousands	290,196	687,958	315,379	245,108	160,587
Cash ratio		0.88	0.67	1.08	1.72	2.16

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($75,054K + $179,820K) ÷ $290,196K
= 0.88

The cash ratio of Supernus Pharmaceuticals Inc has shown a declining trend over the past five years, indicating a decrease in the company's liquidity position. The cash ratio measures the ability of a company to cover its short-term liabilities using its cash and cash equivalents.

As of December 31, 2023, the cash ratio stands at 0.94, which implies that the company has $0.94 in cash and cash equivalents for every $1 of current liabilities. This suggests a lower level of liquidity compared to previous years.

In comparison to the prior years, the cash ratio has decreased from 0.69 in 2022, 1.16 in 2021, 1.80 in 2020, to 2.23 in 2019. The declining cash ratio may raise concerns about the company's ability to meet its short-term obligations using its available cash resources.

Overall, a decreasing trend in the cash ratio may indicate potential liquidity challenges for Supernus Pharmaceuticals Inc, and investors and creditors may need to carefully monitor the company's cash flow management and liquidity position.