Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company’s ability to meet its short-term obligations.
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).
| 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 (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 |
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).
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.
|
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 (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 |
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).
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.
|
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 (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 |
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).
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.
|