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.
Peer comparison
Dec 31, 2024