TG Therapeutics Inc (TGTX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.25 | 4.59 | 3.58 | 3.62 | 5.92 | 5.53 | 2.87 | 2.93 | 3.16 | 5.02 | 4.68 | 4.43 | 5.06 | 4.24 | 5.20 | 5.78 | 6.99 | 3.35 | 4.16 | 1.39 |
| Quick ratio | 4.85 | 3.65 | 2.77 | 2.76 | 5.00 | 4.65 | 2.23 | 2.35 | 3.04 | 4.83 | 4.52 | 4.28 | 4.84 | 4.09 | 5.08 | 5.67 | 6.91 | 3.27 | 4.08 | 1.24 |
| Cash ratio | 3.43 | 2.73 | 2.00 | 2.10 | 4.05 | 3.97 | 1.99 | 2.21 | 3.04 | 4.83 | 4.52 | 4.27 | 4.81 | 4.07 | 5.07 | 5.66 | 6.91 | 3.27 | 4.08 | 1.24 |
The liquidity ratios of TG Therapeutics Inc show a fluctuating trend over the quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has exhibited variability ranging from 1.39 to 6.99, with the highest level recorded at the end of December 2020. However, the current ratio decreased to a lower level by the end of March 2024, indicating a potential reduction in the company's short-term liquidity.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced fluctuations over the quarters, with values ranging from 1.24 to 6.91. The quick ratio was highest at the end of December 2020, suggesting a strong ability to meet short-term obligations without relying on inventory. Like the current ratio, the quick ratio decreased to a lower level by the end of March 2024, signaling a potential decline in the company's immediate liquidity position.
The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and equivalents to cover short-term liabilities, displayed a similar pattern of fluctuations. The cash ratio ranged from 1.24 to 6.91, peaking at the end of December 2020. However, like the other liquidity ratios, the cash ratio decreased by the end of March 2024, indicating a potentially reduced ability to cover short-term obligations with cash on hand.
Overall, the liquidity ratios of TG Therapeutics Inc suggest a varying liquidity position over the quarters, with a general trend of decreasing levels by the end of the reporting period in March 2024, implying a potential liquidity challenge for the company in meeting its short-term obligations.
Additional liquidity measure
| 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 conversion cycle | days | 352.45 | 335.34 | 272.38 | 279.11 | 192.38 | 183.42 | 453.48 | 625.23 | 0.00 | 0.00 | 4.61 | 53.90 | 75.79 | 114.65 | 140.77 | 332.04 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle (CCC) of TG Therapeutics Inc fluctuated significantly over the analyzed period. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to June 30, 2022, the CCC remained quite stable at a relatively low level or even at zero days, indicating efficient management of working capital and quick conversion of inventory and receivables into cash.
However, starting from March 31, 2023, there was a substantial increase in the CCC, reaching a peak of 625.23 days by March 31, 2023, and then fluctuating between 183.42 to 352.45 days until December 31, 2024. These longer cash conversion cycles suggest that the company may be experiencing challenges in managing its working capital efficiently, which could be due to issues with inventory management, delays in collecting receivables, or possibly inadequate cash flow generation from sales.
It would be essential for TG Therapeutics Inc to investigate the reasons behind these prolonged CCC periods and take necessary corrective actions to improve working capital management, enhance cash flow efficiency, and maintain healthy liquidity levels to sustain the business operations effectively.