TG Therapeutics Inc (TGTX)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 5.92 | 3.16 | 5.06 | 6.99 | 1.77 |
| Quick ratio | 5.00 | 3.04 | 4.84 | 6.91 | 1.66 |
| Cash ratio | 4.05 | 3.04 | 4.81 | 6.91 | 1.66 |
TG Therapeutics Inc's liquidity ratios have shown a positive trend over the past five years, indicating a strong ability to meet short-term obligations. The current ratio has significantly improved from 1.77 in 2019 to 5.92 in 2023, reflecting an increase in current assets relative to current liabilities. This suggests the company has a healthy buffer to cover its short-term debts.
Similarly, the quick ratio has also improved steadily, reaching 5.00 in 2023. This ratio excludes inventories from current assets, focusing only on the most liquid assets, such as cash and accounts receivable. The consistent increase in the quick ratio indicates the company's ability to quickly cover its short-term liabilities without relying on inventory.
Moreover, the cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has also shown positive growth over the years. The ratio has increased to 4.05 in 2023, indicating a strong cash position relative to short-term obligations.
Overall, the liquidity ratios of TG Therapeutics Inc demonstrate a healthy liquidity position, with an increasing trend over the past five years. This suggests the company is well-positioned to meet its short-term financial commitments and indicates efficient management of its liquid assets.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 190.59 | 0.00 | 75.79 | 0.00 | 0.00 |
The cash conversion cycle for TG Therapeutics Inc has shown fluctuations over the years. In 2019, 2020, and 2022, the company effectively managed its cash conversion cycle to zero days, indicating efficient cash management in converting inventory into cash quickly, thereby reducing the operating cycle. However, in 2021 and 2023, the cash conversion cycle increased to 75.79 days and 190.59 days, respectively.
The increase in the cash conversion cycle in 2021 and 2023 may suggest potential challenges in efficiently managing inventory, accounts receivable, and accounts payable. A longer cash conversion cycle can tie up capital in the operational cycle, affecting liquidity and potentially increasing financing costs. It may also indicate slower sales conversion into cash or delays in inventory turnover and collections from customers.
Overall, the fluctuation in the cash conversion cycle for TG Therapeutics Inc warrants further investigation into the company's working capital management practices to identify opportunities for improvement in operational efficiency and cash flow optimization.