United Therapeutics Corporation (UTHR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,207,700	961,200	894,800	738,700	738,400
Short-term investments	US$ in thousands	1,801,300	1,908,200	1,035,900	1,096,300	747,500
Total current liabilities	US$ in thousands	804,400	343,200	305,400	323,300	463,000
Cash ratio		3.74	8.36	6.32	5.68	3.21

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,207,700K + $1,801,300K) ÷ $804,400K
= 3.74

The cash ratio of United Therapeutics Corp has fluctuated over the past five years, ranging from 3.50 in 2019 to 8.91 in 2022. The trend indicates that the company's liquidity position has generally been strong, with the ability to cover its short-term liabilities with a significant portion of cash on hand. However, there was a notable decrease in the cash ratio in 2023 to 3.93, which may suggest a lower level of liquidity compared to the previous year. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations in the short term.