United Therapeutics Corporation (UTHR)

Cash ratio

		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 and cash equivalents	US$ in thousands	1,697,200	1,553,900	1,355,700	1,251,500	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
Short-term investments	US$ in thousands	1,569,800	1,772,600	1,615,800	1,456,300	1,786,400	3,828,600	3,635,300	1,699,900	1,877,500	1,648,800	1,460,000	1,454,400	1,035,900	1,091,900	1,025,300	899,000	1,096,300	910,300	875,300	669,300
Total current liabilities	US$ in thousands	738,100	873,400	832,300	860,600	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
Cash ratio		4.43	3.81	3.57	3.15	3.72	6.63	12.70	8.82	8.27	8.28	6.80	7.75	6.32	6.25	6.32	5.73	5.68	6.10	6.12	7.45

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 fluctuated over the past few years, indicating the company's ability to cover its short-term obligations with its available cash. The ratio reached its highest point of 12.70 on June 30, 2023, signifying a strong liquidity position. However, there were declines in the ratio in the subsequent periods.

It is important to note that a higher cash ratio implies a greater ability to meet short-term liabilities, while a lower ratio may indicate potential difficulties in fulfilling immediate financial obligations. United Therapeutics Corporation's cash ratio generally remained above 3.00 during the period under review, suggesting a healthy level of cash reserves relative to its current liabilities.

Overall, the trend in the cash ratio reflects United Therapeutics Corporation's management of its cash resources over time, providing insights into the company's liquidity position and its capacity to weather potential financial challenges.