United Therapeutics Corporation (UTHR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,873,900 | 3,551,000 | 3,380,300 | 2,323,600 | 2,167,200 |
| Total current liabilities | US$ in thousands | 738,100 | 804,400 | 343,200 | 305,400 | 323,300 |
| Current ratio | 5.25 | 4.41 | 9.85 | 7.61 | 6.70 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,873,900K ÷ $738,100K
= 5.25
The current ratio of United Therapeutics Corporation has shown a generally upward trend from 2020 to 2022, indicating improving short-term liquidity and ability to meet its current obligations with its current assets.
In 2020, the current ratio was 6.70, indicating that the company had $6.70 in current assets for every $1 in current liabilities. This ratio increased to 7.61 in 2021 and further to 9.85 in 2022, showcasing a strengthening liquidity position during these years.
However, there was a noticeable decline in the current ratio in 2023 to 4.41, suggesting a potential strain on the company's liquidity position or an increase in current liabilities relative to current assets. It is important for the company to assess and address the factors leading to this decline.
In 2024, the current ratio improved to 5.25, although it remains below the levels seen in 2022. The company should continue monitoring its current ratio to ensure it maintains a healthy balance between current assets and current liabilities to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024