Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
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 |
Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).
| Liquidity 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. |
Current Ratio
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 (US$ 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 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.23 | 4.99 | 3.67 | 4.77 | 4.60 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.62 | 2.26 | 4.02 | 1.54 | — | |
| AbbVie Inc. | 0.98 | 1.28 | 1.65 | 1.50 | — | |
| Allergan PLC | 1.13 | 1.16 | 2.27 | 1.03 | — | |
| Amgen Inc. | 2.79 | 5.49 | 4.11 | 4.44 | — | |
| Biogen Inc. | 2.32 | 2.34 | 2.55 | 2.60 | — | |
| Bristol-Myers Squibb Co. | 1.61 | 1.55 | 1.55 | 1.30 | — | |
| Eli Lilly & Co. | 1.73 | 1.32 | 1.37 | 1.53 | — | |
| Gilead Sciences Inc. | 3.38 | 2.74 | 2.22 | 2.50 | — | |
| Illumina Inc. | 2.49 | 3.99 | 3.29 | 3.43 | — | |
| Johnson & Johnson | 1.47 | 1.41 | 2.47 | 2.17 | — | |
| Merck & Co. Inc. | 1.17 | 1.33 | 1.78 | 1.55 | — | |
| Pfizer Inc. | 1.57 | 1.35 | 1.25 | 1.49 | — | |
| Regeneron Pharmaceuticals Inc. | 4.47 | 3.82 | 2.56 | 3.59 | — | |
| Vertex Pharmaceuticals Inc. | 3.43 | 3.28 | 2.31 | 2.78 | — | |
| Zoetis Inc. | 3.60 | 3.85 | 3.03 | 2.15 | — | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.72 | 1.79 | 2.12 | 1.89 | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.52 | 1.60 | 1.78 | 1.70 | — | |
Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).
1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,067 ÷ 4,057 = 2.23
2 Click competitor name to see calculations.
| Liquidity 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
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 (US$ 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 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 2.00 | 4.67 | 3.24 | 4.05 | 4.13 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.03 | 1.67 | 3.31 | 1.04 | — | |
| AbbVie Inc. | 0.78 | 0.89 | 1.14 | 1.21 | — | |
| Allergan PLC | 0.83 | 0.95 | 2.00 | 0.42 | — | |
| Amgen Inc. | 2.44 | 4.98 | 3.68 | 3.97 | — | |
| Biogen Inc. | 1.83 | 1.78 | 1.94 | 1.93 | — | |
| Bristol-Myers Squibb Co. | 1.37 | 1.30 | 1.27 | 1.05 | — | |
| Eli Lilly & Co. | 1.20 | 0.91 | 0.98 | 1.04 | — | |
| Gilead Sciences Inc. | 3.15 | 2.52 | 1.78 | 2.07 | — | |
| Illumina Inc. | 2.23 | 3.43 | 2.75 | 2.90 | — | |
| Johnson & Johnson | 1.08 | 1.04 | 2.04 | 1.77 | — | |
| Merck & Co. Inc. | 0.72 | 0.83 | 1.24 | 1.04 | — | |
| Pfizer Inc. | 0.84 | 0.93 | 0.84 | 1.07 | — | |
| Regeneron Pharmaceuticals Inc. | 3.50 | 2.98 | 2.13 | 3.10 | — | |
| Vertex Pharmaceuticals Inc. | 3.19 | 2.94 | 2.06 | 2.41 | — | |
| Zoetis Inc. | 2.24 | 2.34 | 1.47 | 1.17 | — | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.28 | 1.39 | 1.67 | 1.45 | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 1.12 | 1.23 | 1.38 | 1.29 | — | |
Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).
1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,108 ÷ 4,057 = 2.00
2 Click competitor name to see calculations.
| Liquidity 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. |
Cash Ratio
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 (US$ 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 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.49 | 4.03 | 2.69 | 3.33 | 3.57 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.45 | 1.08 | 2.82 | 0.67 | — | |
| AbbVie Inc. | 0.47 | 0.59 | 0.66 | 0.77 | — | |
| Allergan PLC | 0.33 | 0.65 | 1.68 | 0.13 | — | |
| Amgen Inc. | 2.17 | 4.62 | 3.40 | 3.62 | — | |
| Biogen Inc. | 1.07 | 1.10 | 1.43 | 1.33 | — | |
| Bristol-Myers Squibb Co. | 0.83 | 0.71 | 0.72 | 0.53 | — | |
| Eli Lilly & Co. | 0.68 | 0.55 | 0.55 | 0.54 | — | |
| Gilead Sciences Inc. | 2.84 | 2.19 | 1.29 | 1.48 | — | |
| Illumina Inc. | 1.95 | 2.88 | 2.21 | 2.27 | — | |
| Johnson & Johnson | 0.63 | 0.60 | 1.59 | 1.38 | — | |
| Merck & Co. Inc. | 0.40 | 0.46 | 0.83 | 0.70 | — | |
| Pfizer Inc. | 0.59 | 0.66 | 0.57 | 0.79 | — | |
| Regeneron Pharmaceuticals Inc. | 1.95 | 1.24 | 0.84 | 1.29 | — | |
| Vertex Pharmaceuticals Inc. | 2.83 | 2.59 | 1.81 | 2.06 | — | |
| Zoetis Inc. | 1.39 | 1.43 | 0.65 | 0.65 | — | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.88 | 0.99 | 1.26 | 1.05 | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.71 | 0.84 | 0.97 | 0.89 | — | |
Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).
1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,042 ÷ 4,057 = 1.49
2 Click competitor name to see calculations.
| Liquidity 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. |