TG Therapeutics Inc (TGTX)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 6.25 | 5.92 | 3.16 | 5.06 | 6.99 |
| Quick ratio | 4.85 | 5.00 | 3.04 | 4.84 | 6.91 |
| Cash ratio | 3.43 | 4.05 | 3.04 | 4.81 | 6.91 |
TG Therapeutics Inc's liquidity ratios have shown a decreasing trend over the past five years.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 6.99 in 2020 to 5.06 in 2021, further dropping to 3.16 in 2022, before improving to 5.92 in 2023 and 6.25 in 2024. While the current ratio remains above the ideal value of 2, the decreasing trend from 2020 to 2022 could indicate potential challenges in meeting short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar pattern. It declined from 6.91 in 2020 to 4.84 in 2021 and 3.04 in 2022, before recovering to 5.00 in 2023 and 4.85 in 2024. This ratio suggests that the company may face difficulties in meeting its immediate obligations without relying on selling inventory.
The cash ratio, which provides the most conservative view of liquidity by considering only cash and cash equivalents to cover current liabilities, decreased from 6.91 in 2020 to 4.81 in 2021 and 3.04 in 2022, before slightly improving to 4.05 in 2023 and 3.43 in 2024. This ratio indicates the company's ability to cover short-term liabilities solely with cash is also diminishing.
Overall, TG Therapeutics Inc needs to carefully monitor its liquidity position to ensure it can meet its short-term financial obligations, especially given the decreasing trend in its liquidity ratios over the past few years.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 354.49 | 190.59 | 0.00 | 75.79 | 0.00 |
TG Therapeutics Inc's cash conversion cycle experienced fluctuations over the years based on the provided data. In December 2020 and December 2022, the company's cash conversion cycle was efficiently managed at 0.00 days, indicating a swift conversion of inventory into cash flow. However, by December 2021, the cash conversion cycle increased to 75.79 days, suggesting a delay in converting inventory to cash. This trend continued in December 2023, with the cash conversion cycle rising further to 190.59 days, indicating potential difficulties in managing working capital efficiently. By December 2024, the cash conversion cycle significantly extended to 354.49 days, pointing towards potential challenges in managing inventory, receivables, and payables effectively. Further analysis of the factors influencing this trend is recommended to improve operational efficiency and cash flow management.