Supernus Pharmaceuticals Inc (SUPN)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	69,331	31,673	52,089	63,401	75,054	94,985	24,706	58,442	93,120	111,492	173,428	115,715	203,434	215,281	223,771	255,642	288,640	204,293	210,975	225,767
Short-term investments	US$ in thousands	384,281	371,537	295,098	234,335	179,820	105,204	126,950	170,126	368,214	280,297	187,359	196,485	136,246	228,571	186,070	135,459	133,893	147,657	163,839	175,104
Total current liabilities	US$ in thousands	292,397	291,508	308,656	314,554	290,196	287,534	252,590	731,545	687,958	725,987	735,536	284,558	315,379	234,711	283,447	240,812	245,108	299,606	269,276	168,335
Cash ratio		1.55	1.38	1.12	0.95	0.88	0.70	0.60	0.31	0.67	0.54	0.49	1.10	1.08	1.89	1.45	1.62	1.72	1.17	1.39	2.38

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 given period, ranging from a high of 2.38 on March 31, 2020 to a low of 0.31 on March 31, 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on external sources of funding.

Supernus Pharmaceuticals Inc's cash ratio generally remained above 1 throughout the period, indicating that the company had more than enough cash to cover its short-term liabilities. However, there were periods, such as in the second half of 2022 and the first half of 2023, where the cash ratio dipped below 1, suggesting that the company may have had some challenges meeting its short-term obligations solely from its cash reserves.

Overall, the trend of Supernus Pharmaceuticals Inc's cash ratio demonstrates the importance of monitoring liquidity levels and the company's ability to manage its short-term obligations effectively. It is crucial for investors and analysts to assess how well a company can weather financial challenges and whether its cash position is adequate to support its operations and growth strategies.