Supernus Pharmaceuticals Inc (SUPN)

The liquidity ratios of Supernus Pharmaceuticals Inc, as indicated by the current ratio, quick ratio, and cash ratio, show varying levels of liquidity over the past eight quarters.

1. Current Ratio:
- The current ratio measures the company's ability to meet its short-term obligations with its current assets.
- Over the quarters, Supernus Pharmaceuticals Inc has shown an improving trend in its current ratio, with fluctuations observed. The ratio ranges from 0.85 in Q2 2022 to 1.70 in Q4 2023.
- A current ratio above 1.0 indicates that the company has more current assets than current liabilities, which is generally a positive sign. Supernus Pharmaceuticals Inc's current ratio has consistently been above 1.0 in the recent quarters, which suggests the company has a strong ability to meet its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- Similarly to the current ratio, Supernus Pharmaceuticals Inc's quick ratio has shown an improving trend over the quarters, though with some fluctuations. The ratio ranges from 0.73 in Q2 2022 to 1.43 in Q4 2023.
- A quick ratio above 1.0 indicates that the company has enough liquid assets to cover its short-term liabilities without relying on selling inventory. Supernus Pharmaceuticals Inc has consistently maintained a quick ratio above 1.0, indicating a healthy liquidity position.

3. Cash Ratio:
- The cash ratio is the most conservative measure of liquidity, as it only considers cash and cash equivalents to cover current liabilities.
- The cash ratio of Supernus Pharmaceuticals Inc has fluctuated over the quarters, with values ranging from 0.52 in Q2 2022 to 0.94 in Q4 2023.
- A cash ratio above 1.0 would mean the company has more cash on hand than current liabilities. While Supernus Pharmaceuticals Inc has not achieved a cash ratio above 1.0, the company still maintains a sufficient level of cash reserves to cover its short-term obligations.

In summary, the liquidity ratios of Supernus Pharmaceuticals Inc indicate a generally improving liquidity position, as seen in the increasing current and quick ratios over the quarters. The company has demonstrated an ability to efficiently manage its short-term obligations by maintaining adequate levels of liquid assets.

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Additional liquidity measure

The cash conversion cycle of Supernus Pharmaceuticals Inc has shown variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 415.30 days, a slight decrease from the previous quarter. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash has been relatively stable. Despite fluctuations, the company has managed to keep its cash conversion cycle within a manageable range. However, there is room for improvement, as certain quarters, such as Q2 2022 and Q1 2022, had significantly longer cash conversion cycles, which could indicate inefficiencies in managing working capital. It would be beneficial for the company to focus on optimizing its inventory turnover and accounts receivable collection to further enhance its cash conversion cycle efficiency.