United Therapeutics Corporation (UTHR)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	1,207,700	1,107,700	1,067,300	1,163,500	961,200	966,800	795,200	813,300	894,800	908,500	942,200	832,300	738,700	670,200	685,400	875,200	738,400	719,700	881,300	790,600
Short-term investments	US$ in thousands	1,801,300	1,784,700	1,632,000	1,721,800	1,908,200	1,685,500	1,509,000	1,550,500	1,035,900	1,191,300	1,090,300	965,300	1,096,300	910,300	875,300	669,300	747,500	850,300	904,900	814,500
Total current liabilities	US$ in thousands	804,400	744,100	370,300	324,600	343,200	315,900	331,500	292,600	305,400	320,000	311,400	302,400	323,300	258,900	255,000	207,300	463,000	469,900	463,500	270,000
Cash ratio		3.74	3.89	7.29	8.89	8.36	8.40	6.95	8.08	6.32	6.56	6.53	5.94	5.68	6.10	6.12	7.45	3.21	3.34	3.85	5.94

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover immediate obligations.

Based on the provided data, United Therapeutics Corp's cash ratio has shown fluctuations over the past eight quarters. The ratio ranged from a low of 3.93 in Q4 2023 to a high of 9.11 in Q1 2023.

In Q4 2023, the cash ratio decreased to 3.93, indicating a lower ability to cover short-term liabilities with available cash compared to the previous quarters. This may suggest a potential liquidity challenge or increased short-term obligations.

Conversely, in Q1 2023, the cash ratio peaked at 9.11, signaling a significant improvement in the company's ability to meet short-term obligations with cash reserves. This could be attributed to improved cash management or a decrease in short-term liabilities.

Overall, United Therapeutics Corp's cash ratio has demonstrated variability, and it would be important to further investigate the reasons behind these fluctuations to assess the company's liquidity position accurately.