Supernus Pharmaceuticals Inc (SUPN)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	69,331	75,054	93,120	203,434	288,640
Short-term investments	US$ in thousands	384,281	179,820	368,214	136,246	133,893
Total current liabilities	US$ in thousands	292,397	290,196	687,958	315,379	245,108
Cash ratio		1.55	0.88	0.67	1.08	1.72

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,331K + $384,281K) ÷ $292,397K
= 1.55

The cash ratio of Supernus Pharmaceuticals Inc has fluctuated over the past five years, indicating changes in the company's ability to cover its short-term liabilities with cash and cash equivalents.

- In December 31, 2020, the cash ratio was 1.72, suggesting that the company had $1.72 in cash and cash equivalents for every dollar of current liabilities, indicating a strong liquidity position.

- However, by December 31, 2021, the cash ratio decreased to 1.08, signaling a potential decrease in the company's ability to meet its short-term obligations solely with cash.

- The trend continued to decline in December 31, 2022, with a cash ratio of 0.67, indicating a significant reduction in liquidity compared to the previous years.

- There was a slight improvement in December 31, 2023, with a cash ratio of 0.88, which suggests a partial recovery in the company's ability to cover its short-term liabilities with cash.

- By December 31, 2024, the cash ratio increased to 1.55, approaching the level seen in 2020, which could indicate an improvement in liquidity compared to the previous years.

Overall, the cash ratio analysis shows fluctuations in Supernus Pharmaceuticals Inc's liquidity over the five-year period, with periods of strong liquidity followed by decreases and subsequent improvements. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations efficiently.