United Therapeutics Corporation (UTHR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 1,697,200 1,207,700 961,200 894,800 738,700
Short-term investments US$ in thousands 1,569,800 1,786,400 1,877,500 1,035,900 1,096,300
Total current liabilities US$ in thousands 738,100 804,400 343,200 305,400 323,300
Cash ratio 4.43 3.72 8.27 6.32 5.68

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,697,200K + $1,569,800K) ÷ $738,100K
= 4.43

The cash ratio of United Therapeutics Corporation has shown fluctuations over the years, ranging from 3.72 to 8.27. A higher cash ratio indicates a company's ability to cover its short-term liabilities with its cash and cash equivalents. In December 31, 2022, the cash ratio reached its peak at 8.27, implying the company had a stronger ability to meet its short-term obligations with cash on hand. However, by December 31, 2023, the ratio decreased to 3.72, suggesting a decrease in the company's liquidity position. It is essential for United Therapeutics Corporation to actively manage its cash position to ensure it maintains sufficient liquidity to meet its financial obligations in the short term.