United Therapeutics Corporation (UTHR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 4.09 | 4.23 | 8.03 | 9.30 | 9.00 | 9.13 | 7.47 | 8.66 | 6.97 | 7.23 | 7.08 | 6.41 | 6.16 | 6.69 | 6.79 | 8.17 | 3.54 | 3.73 | 4.24 | 6.54 |
| 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 |
The liquidity ratios of United Therapeutics Corp have shown consistency and strength over the quarters, reflecting the company's ability to meet its short-term obligations without any liquidity issues.
The current ratio, which measures the company's ability to cover its current liabilities with current assets, has consistently been well above 1, indicating a strong financial position. The ratio peaked at 9.84 in Q1 2023, suggesting ample liquidity to cover short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been robust. United Therapeutics Corp maintained quick ratios above 4 in each quarter, indicating the company's ability to meet its immediate liabilities using its most liquid assets.
Furthermore, the cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, also demonstrates sound liquidity management by the company. The cash ratio remained above 3 in all quarters, showing a healthy cash position to meet obligations if needed.
Overall, the consistent high values of all three liquidity ratios suggest that United Therapeutics Corp has a strong liquidity position, which could provide a cushion in times of financial uncertainties or unexpected cash flow needs.
Additional liquidity measure
| 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 conversion cycle | days | 97.76 | 142.27 | 164.28 | 149.11 | 255.72 | 113.77 | 114.83 | 137.89 | 126.44 | 151.00 | 150.63 | 143.77 | 147.65 | 226.05 | 213.07 | 273.17 | 297.31 | 328.68 | 296.53 | 237.53 |
The cash conversion cycle of United Therapeutics Corp has shown fluctuation over the past eight quarters. The cycle measures the company's effectiveness in managing its working capital by evaluating the time taken to convert investments in inventory and other resources into cash inflows from sales.
In Q1 2022, the cash conversion cycle was at its lowest point at 291.92 days, indicating that the company was able to efficiently manage its working capital and convert inventories into cash relatively quickly. However, in Q4 2022, the cycle increased significantly to 277.26 days, suggesting a slowdown in the company's ability to convert its resources into cash.
The trend continued in the following quarters, with Q1 2023 and Q2 2023 showing further increases in the cash conversion cycle, reaching 234.96 days and 224.67 days, respectively. This may indicate challenges in managing working capital efficiency and liquidity.
However, in Q3 2023 and Q4 2023, there was a slight improvement in the cash conversion cycle, decreasing to 198.02 days and 194.27 days, respectively. This suggests that the company may have implemented strategies to enhance its working capital management and accelerate cash flow generation.
Overall, United Therapeutics Corp should continue to monitor its cash conversion cycle closely to ensure optimal management of working capital and maximize cash flow efficiency.