Celgene Corp. (CELG)

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Celgene Corp., liquidity ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Current ratio	2.23	4.99	3.67	4.77	4.60
Quick ratio	2.00	4.67	3.24	4.05	4.13
Cash ratio	1.49	4.03	2.69	3.33	3.57

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Celgene Corp.’s current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Celgene Corp.’s quick ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Celgene Corp.’s cash ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Celgene Corp., current ratio calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current assets	9,067	14,892	10,868	9,401	9,713
Current liabilities	4,057	2,987	2,959	1,969	2,112
Ratio
Current ratio¹	2.23	4.99	3.67	4.77	4.60
Benchmarks
Current Ratio, Competitors
Abbott Laboratories	1.62	2.26	4.02	1.54	1.45
AbbVie Inc.	0.98	1.28	1.65	1.50	1.41
Allergan PLC	1.13	1.16	2.27	1.03	1.37
Amgen Inc.	2.79	5.49	4.11	4.44	4.95
Biogen Inc.	2.32	2.34	2.55	2.60	2.11
Bristol-Myers Squibb Co.	1.61	1.55	1.55	1.30	1.73
Eli Lilly & Co.	1.73	1.32	1.37	1.53	1.09
Gilead Sciences Inc.	3.38	2.74	2.22	2.50	3.07
Johnson & Johnson	1.47	1.41	2.47	2.17	2.36
Merck & Co. Inc.	1.17	1.33	1.78	1.55	1.77
Pfizer Inc.	1.57	1.35	1.25	1.49	2.67
Regeneron Pharmaceuticals Inc.	4.47	3.82	2.56	3.59	3.31
Current Ratio, Sector
Pharmaceuticals & Biotechnology	1.70	1.82	2.14	1.92	2.19
Current Ratio, Industry
Health Care	1.52	1.64	1.83	1.73	1.98

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 9,067 ÷ 4,057 = 2.23

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Celgene Corp.’s current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Celgene Corp., quick ratio calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	4,234	7,013	6,170	4,880	4,122
Debt securities available-for-sale	496	3,219	—	—	—
Equity investments with readily determinable fair values	1,312	1,810	—	—	—
Marketable securities available-for-sale	—	—	1,800	1,672	3,425
Accounts receivable, net of allowances	2,066	1,921	1,621	1,421	1,167
Total quick assets	8,108	13,963	9,590	7,973	8,713
Current liabilities	4,057	2,987	2,959	1,969	2,112
Ratio
Quick ratio¹	2.00	4.67	3.24	4.05	4.13
Benchmarks
Quick Ratio, Competitors
Abbott Laboratories	1.03	1.67	3.31	1.04	0.76
AbbVie Inc.	0.78	0.89	1.14	1.21	1.06
Allergan PLC	0.83	0.95	2.00	0.42	0.52
Amgen Inc.	2.44	4.98	3.68	3.97	4.22
Biogen Inc.	1.83	1.78	1.94	1.93	1.54
Bristol-Myers Squibb Co.	1.37	1.30	1.27	1.05	1.26
Eli Lilly & Co.	1.20	0.91	0.98	1.04	0.77
Gilead Sciences Inc.	3.15	2.52	1.78	2.07	2.56
Johnson & Johnson	1.08	1.04	2.04	1.77	1.76
Merck & Co. Inc.	0.72	0.83	1.24	1.04	1.19
Pfizer Inc.	0.84	0.93	0.84	1.07	2.07
Regeneron Pharmaceuticals Inc.	3.50	2.98	2.13	3.10	2.93
Quick Ratio, Sector
Pharmaceuticals & Biotechnology	1.27	1.42	1.69	1.48	1.63
Quick Ratio, Industry
Health Care	1.13	1.29	1.44	1.33	1.48

2018 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 8,108 ÷ 4,057 = 2.00

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Celgene Corp.’s quick ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Celgene Corp., cash ratio calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	4,234	7,013	6,170	4,880	4,122
Debt securities available-for-sale	496	3,219	—	—	—
Equity investments with readily determinable fair values	1,312	1,810	—	—	—
Marketable securities available-for-sale	—	—	1,800	1,672	3,425
Total cash assets	6,042	12,042	7,970	6,552	7,547
Current liabilities	4,057	2,987	2,959	1,969	2,112
Ratio
Cash ratio¹	1.49	4.03	2.69	3.33	3.57
Benchmarks
Cash Ratio, Competitors
Abbott Laboratories	0.45	1.08	2.82	0.67	0.42
AbbVie Inc.	0.47	0.59	0.66	0.77	0.73
Allergan PLC	0.33	0.65	1.68	0.13	0.05
Amgen Inc.	2.17	4.62	3.40	3.62	3.86
Biogen Inc.	1.07	1.10	1.43	1.33	0.83
Bristol-Myers Squibb Co.	0.83	0.71	0.72	0.53	0.88
Eli Lilly & Co.	0.68	0.55	0.55	0.54	0.43
Gilead Sciences Inc.	2.84	2.19	1.29	1.48	1.76
Johnson & Johnson	0.63	0.60	1.59	1.38	1.32
Merck & Co. Inc.	0.40	0.46	0.83	0.70	0.84
Pfizer Inc.	0.59	0.66	0.57	0.79	1.67
Regeneron Pharmaceuticals Inc.	1.95	1.24	0.84	1.29	1.38
Cash Ratio, Sector
Pharmaceuticals & Biotechnology	0.87	1.03	1.29	1.08	1.21
Cash Ratio, Industry
Health Care	0.73	0.90	1.03	0.94	1.07

2018 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 6,042 ÷ 4,057 = 1.49

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Celgene Corp.’s cash ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.