United Therapeutics Corporation (UTHR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,551,000 | 3,458,900 | 3,213,400 | 3,193,000 | 3,380,300 | 3,056,400 | 2,684,300 | 2,586,600 | 2,323,600 | 2,385,900 | 2,317,900 | 2,014,300 | 2,167,200 | 1,868,200 | 1,894,400 | 1,846,300 | 1,864,500 | 1,933,400 | 2,139,800 | 1,942,500 |
| 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 |
| Current ratio | 4.41 | 4.65 | 8.68 | 9.84 | 9.85 | 9.68 | 8.10 | 8.84 | 7.61 | 7.46 | 7.44 | 6.66 | 6.70 | 7.22 | 7.43 | 8.91 | 4.03 | 4.11 | 4.62 | 7.19 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,551,000K ÷ $804,400K
= 4.41
Based on the data provided, United Therapeutics Corp's current ratio has fluctuated over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, reached its highest point in Q1 2023 at 9.84 and its lowest point in Q2 2022 at 8.10.
Overall, the company has maintained a consistently high current ratio above 4.0 for the past eight quarters, indicating a strong liquidity position. A current ratio above 1.0 suggests that the company has more current assets than current liabilities, which is typically viewed positively by investors and creditors.
The upward trend in the current ratio from Q1 2023 to Q2 2023, with a sharp increase from 4.65 to 8.68, may indicate an improvement in the company's short-term liquidity position during that period. However, the subsequent decrease in Q3 2023 to 4.65 raises questions about potential changes in the company's current asset and liability composition.
It is important for investors and analysts to further investigate the reasons behind these fluctuations in the current ratio to assess the company's ability to meet its short-term obligations and manage its liquidity effectively.
Peer comparison
Dec 31, 2023