Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cytokinetics Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio
- The current ratio exhibited a generally high and fluctuating trend over the analyzed periods. Starting from 7.09 in the first quarter of 2019, it showed a progressive increase until it peaked around late 2020 with values exceeding 15. Subsequently, a noticeable decline is observed entering 2021, reaching a low near 5.9 in the second quarter of that year. After this dip, the ratio recovered and maintained values mostly above 9 until late 2022, followed by a gradual decrease through 2023, ending near 7.22. This indicates a strong liquidity position overall, though the volatility suggests changes in current asset or liability management over time.
- Quick Ratio
- The quick ratio pattern closely mirrors that of the current ratio throughout all periods, suggesting consistent levels of liquid assets excluding inventory. Beginning at 6.88 in early 2019, it rose to peak values above 15 during the latter part of 2020. A sharp decrease follows in early 2021, with a nadir near 5.72, before a recovery phase that sustains values above 7 through 2022. The ratio then trends downward somewhat into 2023, reaching around 6.97 by the end of the period. This level of quick liquidity remains robust, demonstrating the company's ability to cover short-term obligations with highly liquid assets despite some volatility.
- Cash Ratio
- The cash ratio also displays a pattern akin to the current and quick ratios, indicating that cash and cash equivalents form a substantial component of the company's liquid assets. It increased steadily from 6.72 in early 2019, peaked at approximately 14.88 in late 2020, and then experienced a significant decline during 2021 to levels below 6. This was followed by relative stability and a moderate rise through 2022, with values mostly ranging between 6.5 and 11.3. Entering 2023, a gradual decline is evident, ending near 6.94. The substantial peaks in late 2020 suggest periods of strong cash reserves, while the subsequent decreases may indicate cash utilization related to operations or investments.
Current Ratio
Cytokinetics Inc., current ratio calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | 561,416) | 586,575) | 680,629) | 795,186) | 884,275) | 602,250) | 623,526) | 535,672) | 494,941) | 364,229) | 433,117) | 474,221) | 418,412) | 218,954) | 225,938) | 233,752) | 176,535) | 184,951) | 186,400) | ||||||
| Current liabilities | 77,723) | 65,617) | 75,220) | 84,617) | 76,496) | 66,843) | 66,847) | 71,860) | 80,868) | 61,766) | 35,930) | 31,199) | 27,573) | 22,696) | 20,741) | 26,023) | 21,517) | 21,959) | 26,277) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 7.22 | 8.94 | 9.05 | 9.40 | 11.56 | 9.01 | 9.33 | 7.45 | 6.12 | 5.90 | 12.05 | 15.20 | 15.17 | 9.65 | 10.89 | 8.98 | 8.20 | 8.42 | 7.09 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.96 | 0.89 | 0.96 | 0.96 | 0.93 | 0.84 | 0.82 | 0.79 | 1.01 | 0.91 | 0.83 | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 2.86 | 2.77 | 3.14 | 1.41 | 1.68 | 1.53 | 1.44 | 1.59 | 1.64 | 1.31 | 1.66 | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 1.18 | 1.39 | 1.42 | 1.25 | 1.42 | 1.44 | 1.32 | 1.52 | 1.47 | 1.54 | 1.56 | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 2.26 | 2.08 | 1.89 | 1.89 | 1.78 | 1.75 | 1.68 | 1.43 | 1.48 | 2.26 | 2.05 | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 1.05 | 1.13 | 1.30 | 1.05 | 1.13 | 1.10 | 1.27 | 1.23 | 1.30 | 1.15 | 1.42 | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 1.34 | 1.02 | 1.28 | 1.29 | 1.30 | 1.43 | 1.48 | 1.27 | 1.37 | 1.36 | 1.37 | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 1.21 | 1.12 | 1.07 | 0.99 | 1.43 | 1.42 | 1.39 | 1.35 | 1.34 | 1.39 | 1.28 | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 1.38 | 1.28 | 1.44 | 1.47 | 1.46 | 1.39 | 1.40 | 1.27 | 1.31 | 1.31 | 1.02 | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 2.38 | 2.12 | 1.37 | 1.22 | 1.59 | 1.42 | 1.39 | 1.40 | 1.39 | 1.37 | 1.48 | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 5.18 | 5.45 | 5.45 | 5.06 | 5.36 | 5.12 | 4.76 | 3.56 | 3.71 | 3.57 | 3.12 | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.63 | 1.42 | 1.27 | 1.48 | 1.74 | 1.65 | 1.56 | 1.50 | 3.19 | 2.78 | 2.53 | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 4.08 | 4.14 | 4.28 | 4.83 | 4.70 | 4.50 | 4.75 | 4.46 | 4.62 | 4.61 | 4.39 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 561,416 ÷ 77,723 = 7.22
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's liquidity and short-term financial position over the observed periods.
- Current Assets
- The current assets display significant fluctuations over the quarters. Initially, current assets were relatively stable around the range of 176,000 to 234,000 thousand US dollars in 2019. Starting in the second quarter of 2020, a notable increase occurred, peaking at 884,275 thousand dollars in the third quarter of 2022. After this peak, current assets showed a declining trend but remained higher than the levels observed in 2019 and early 2020.
- Current Liabilities
- Current liabilities generally increased over the analyzed timeline. Early in the period, liabilities were around 21,000 to 26,000 thousand dollars. From mid-2021 onwards, there was a marked rise, with values reaching between approximately 65,617 and 84,617 thousand dollars. This increase points to growing short-term obligations, especially in comparison to the earlier periods.
- Current Ratio
- The current ratio, a key liquidity indicator, showed a generally strong liquidity position across the periods, with values consistently above 5. In 2019 and early 2020, the current ratio was especially high, ranging from 7.09 up to 15.2, reflecting a very comfortable ability to cover short-term liabilities with current assets. However, a sharp decrease occurred in mid-2021, dropping to as low as 5.9, followed by some recovery to values around 7 to 11 through 2022. More recently, there has been a slight downward trend, with the current ratio moving from 9.05 in mid-2023 down to 7.22 in the third quarter, indicating a slight weakening in liquidity though it remains at a relatively safe level.
- Summary of Implications
- Overall, the company has maintained a robust liquidity profile, with current assets growing significantly especially in 2020 and 2022. The increase in current liabilities over the same period has partially offset these gains, reflected in the declining current ratio after mid-2021. Despite this, the current ratio indicates that the company maintains a good cushion to meet short-term obligations. The recent slight decline in the ratio suggests monitoring liquidity closely going forward to ensure the stability of the financial position.
Quick Ratio
Cytokinetics Inc., quick ratio calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 99,692) | 68,639) | 101,616) | 65,582) | 106,238) | 93,631) | 115,422) | 112,666) | 90,562) | 37,154) | 44,594) | 82,985) | 200,812) | 61,134) | 49,776) | 36,433) | 39,634) | 34,361) | 39,409) | ||||||
| Short-term investments | 439,547) | 497,083) | 562,346) | 716,995) | 761,426) | 492,395) | 493,552) | 358,972) | 387,074) | 313,147) | 380,983) | 381,075) | 209,452) | 151,929) | 170,930) | 188,679) | 126,405) | 138,507) | 137,213) | ||||||
| Accounts receivable | 2,499) | 985) | 1,006) | 147) | 2,294) | 1,973) | 6,056) | 51,819) | 644) | 2,701) | 4,514) | 4,420) | 4,965) | 2,254) | 2,704) | 5,163) | 6,576) | 8,993) | 4,165) | ||||||
| Total quick assets | 541,738) | 566,707) | 664,968) | 782,724) | 869,958) | 587,999) | 615,030) | 523,457) | 478,280) | 353,002) | 430,091) | 468,480) | 415,229) | 215,317) | 223,410) | 230,275) | 172,615) | 181,861) | 180,787) | ||||||
| Current liabilities | 77,723) | 65,617) | 75,220) | 84,617) | 76,496) | 66,843) | 66,847) | 71,860) | 80,868) | 61,766) | 35,930) | 31,199) | 27,573) | 22,696) | 20,741) | 26,023) | 21,517) | 21,959) | 26,277) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 6.97 | 8.64 | 8.84 | 9.25 | 11.37 | 8.80 | 9.20 | 7.28 | 5.91 | 5.72 | 11.97 | 15.02 | 15.06 | 9.49 | 10.77 | 8.85 | 8.02 | 8.28 | 6.88 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.71 | 0.63 | 0.66 | 0.69 | 0.69 | 0.61 | 0.56 | 0.56 | 0.75 | 0.65 | 0.61 | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 2.41 | 2.34 | 2.62 | 0.95 | 1.17 | 0.99 | 0.90 | 1.06 | 1.19 | 0.86 | 1.16 | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.77 | 0.94 | 1.01 | 0.87 | 0.98 | 1.07 | 1.03 | 1.20 | 1.16 | 1.16 | 1.25 | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 1.76 | 1.52 | 1.34 | 1.30 | 1.19 | 1.13 | 1.08 | 0.89 | 0.93 | 1.67 | 1.51 | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.58 | 0.63 | 0.79 | 0.63 | 0.71 | 0.67 | 0.77 | 0.80 | 0.79 | 0.67 | 0.83 | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.98 | 0.78 | 0.95 | 0.99 | 0.96 | 1.06 | 1.06 | 0.95 | 1.01 | 1.05 | 0.99 | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 0.86 | 0.84 | 0.81 | 0.71 | 1.10 | 1.09 | 1.06 | 1.04 | 1.03 | 1.04 | 0.97 | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.83 | 0.74 | 0.90 | 0.93 | 0.90 | 0.85 | 0.84 | 0.73 | 0.78 | 0.75 | 0.58 | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 1.78 | 1.59 | 0.88 | 0.80 | 1.18 | 1.02 | 0.95 | 1.00 | 0.99 | 0.91 | 0.88 | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 4.31 | 4.53 | 4.54 | 4.16 | 4.37 | 4.20 | 3.95 | 2.98 | 3.03 | 2.92 | 2.39 | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.13 | 0.89 | 0.80 | 1.06 | 1.06 | 0.98 | 0.97 | 1.00 | 2.37 | 1.92 | 1.70 | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 3.74 | 3.82 | 3.95 | 4.46 | 4.28 | 4.14 | 4.37 | 4.04 | 4.21 | 4.16 | 4.06 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 541,738 ÷ 77,723 = 6.97
2 Click competitor name to see calculations.
- Total Quick Assets
-
The total quick assets demonstrate significant volatility over the observed periods. Initially, values ranged between approximately 170 million and 230 million US dollars in 2019. During 2020, a marked increase is noted, with quick assets peaking around 415 million to 470 million US dollars in the latter half of the year, indicating improved liquidity or asset reallocation.
In 2021, quick assets remain elevated but with fluctuations, reaching highs over 520 million US dollars and then dipping to around 350 million before rising again toward year-end. The upward trajectory continues in early 2022, peaking near 870 million US dollars by September but then declining somewhat through 2023 to roughly 540 million US dollars. Overall, there is a positive growth trend in total quick assets from 2019 through 2023 despite some periods of decrease.
- Current Liabilities
-
Current liabilities showed moderate fluctuations throughout the periods. Starting around 21 to 26 million US dollars in 2019, liabilities dipped slightly in early 2020 before increasing steadily through the year and peaking at over 80 million US dollars in mid to late 2021. This represents a considerable increase compared to earlier periods.
From mid-2021 onward, current liabilities generally remained elevated in the range of 65 to 85 million US dollars, with minor oscillations. The data indicate that liabilities increased substantially over the five-year span, potentially signaling increased operational costs or short-term obligations.
- Quick Ratio
-
The quick ratio experienced considerable variability throughout the periods observed. Early measurements in 2019 ranged from approximately 6.9 to 8.9, reflecting relatively strong short-term liquidity positions.
In 2020, the ratio peaked substantially, reaching above 15, indicative of a very strong liquidity buffer relative to current liabilities. However, the ratio declined in 2021 to values closer to 5.7 to 7.3, signifying a reduction in liquidity strength. Subsequently, the quick ratio rose again in 2022, climbing back to more than 11, before gradually diminishing in 2023 to just under 7.
This pattern suggests fluctuations in liquidity management and possibly the impact of changing current liabilities and quick asset levels. The overall high values of the quick ratio throughout indicate the company maintained coverage of its short-term obligations comfortably during the entire period, though with some periods of contraction.
- Summary
-
The financial data reveal a general trend of increasing total quick assets and rising current liabilities over the reported periods. Despite the growth in current liabilities, the quick ratio remained well above 1.0 at all times, illustrating robust liquidity.
Periods of sharp increases in both quick assets and current liabilities, especially during 2020 and 2021, suggest active financial management and potentially strategic changes in the company’s working capital. The shrinking quick ratio in certain quarters highlights intervals where liabilities grew faster than liquid assets, yet overall liquidity remained adequate.
In conclusion, the financial metrics denote strong and stable liquidity with periods of asset accumulation offset by rising liabilities, necessitating ongoing monitoring of short-term financial obligations and asset utilization.
Cash Ratio
Cytokinetics Inc., cash ratio calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 99,692) | 68,639) | 101,616) | 65,582) | 106,238) | 93,631) | 115,422) | 112,666) | 90,562) | 37,154) | 44,594) | 82,985) | 200,812) | 61,134) | 49,776) | 36,433) | 39,634) | 34,361) | 39,409) | ||||||
| Short-term investments | 439,547) | 497,083) | 562,346) | 716,995) | 761,426) | 492,395) | 493,552) | 358,972) | 387,074) | 313,147) | 380,983) | 381,075) | 209,452) | 151,929) | 170,930) | 188,679) | 126,405) | 138,507) | 137,213) | ||||||
| Total cash assets | 539,239) | 565,722) | 663,962) | 782,577) | 867,664) | 586,026) | 608,974) | 471,638) | 477,636) | 350,301) | 425,577) | 464,060) | 410,264) | 213,063) | 220,706) | 225,112) | 166,039) | 172,868) | 176,622) | ||||||
| Current liabilities | 77,723) | 65,617) | 75,220) | 84,617) | 76,496) | 66,843) | 66,847) | 71,860) | 80,868) | 61,766) | 35,930) | 31,199) | 27,573) | 22,696) | 20,741) | 26,023) | 21,517) | 21,959) | 26,277) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 6.94 | 8.62 | 8.83 | 9.25 | 11.34 | 8.77 | 9.11 | 6.56 | 5.91 | 5.67 | 11.84 | 14.87 | 14.88 | 9.39 | 10.64 | 8.65 | 7.72 | 7.87 | 6.72 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.38 | 0.27 | 0.24 | 0.31 | 0.36 | 0.29 | 0.23 | 0.28 | 0.43 | 0.30 | 0.31 | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 2.05 | 2.00 | 2.22 | 0.59 | 0.80 | 0.57 | 0.51 | 0.66 | 0.87 | 0.55 | 0.82 | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.33 | 0.43 | 0.49 | 0.42 | 0.48 | 0.63 | 0.66 | 0.78 | 0.73 | 0.68 | 0.75 | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 1.31 | 1.02 | 0.85 | 0.71 | 0.64 | 0.53 | 0.49 | 0.32 | 0.35 | 1.07 | 0.93 | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.11 | 0.15 | 0.23 | 0.13 | 0.18 | 0.18 | 0.19 | 0.26 | 0.28 | 0.22 | 0.26 | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.57 | 0.48 | 0.56 | 0.57 | 0.54 | 0.61 | 0.62 | 0.56 | 0.56 | 0.64 | 0.58 | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 0.53 | 0.53 | 0.54 | 0.42 | 0.75 | 0.73 | 0.70 | 0.70 | 0.70 | 0.65 | 0.60 | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.38 | 0.27 | 0.45 | 0.54 | 0.49 | 0.44 | 0.40 | 0.34 | 0.42 | 0.39 | 0.26 | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 1.42 | 1.29 | 0.55 | 0.54 | 0.82 | 0.70 | 0.61 | 0.73 | 0.71 | 0.61 | 0.51 | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 2.75 | 2.88 | 2.89 | 2.46 | 2.44 | 2.49 | 2.34 | 1.45 | 1.56 | 1.05 | 1.09 | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 0.43 | 0.22 | 0.22 | 0.50 | 0.26 | 0.17 | 0.23 | 0.33 | 1.55 | 1.01 | 0.80 | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 3.31 | 3.35 | 3.44 | 3.93 | 3.74 | 3.62 | 3.78 | 3.51 | 3.64 | 3.65 | 3.56 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 539,239 ÷ 77,723 = 6.94
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning the liquidity position and obligations over the examined periods.
- Total Cash Assets
- The total cash assets demonstrated considerable fluctuations throughout the periods. Initially, there was a slight decline from approximately 176.6 million USD in March 2019 to about 166.0 million USD by September 2019, followed by a substantial increase, peaking at over 464.0 million USD in December 2020. Subsequent quarters showed both declines and rises, with significant growth noted from mid-2021, culminating in a peak of approximately 867.7 million USD by September 2022. After this peak, a downward trend emerged through March 2023, with cash assets decreasing to roughly 539.2 million USD.
- Current Liabilities
- Current liabilities exhibited an overall increasing trajectory across the periods. Starting around 26.3 million USD in March 2019, liabilities initially decreased to a low near 20.7 million USD by March 2020. Afterward, there was a steady rise, with a marked increase evident from March 2021, reaching levels above 80.9 million USD in September 2021. Although some fluctuations occurred, the upward trend persisted with current liabilities generally exceeding 65 million USD from early 2022 through March 2023.
- Cash Ratio
- The cash ratio, a measure of liquidity, showed significant variability. It began at 6.72 in March 2019, climbed to a high near 14.9 around late 2020, signifying strong liquidity relative to short-term obligations. However, a marked decline followed in 2021, with values dropping to approximately 5.7-6.6 over several quarters. A recovery phase occurred in 2022, with ratios increasing back above 9.0 and peaking at about 11.3 in the third quarter. The most recent period saw a renewed decline, decreasing to approximately 6.9 by September 2023.
Overall, the data indicates that the company experienced phases of strong liquidity and cash accumulation, particularly through late 2020 and mid-2022, supported by a growth in cash assets notably exceeding current liabilities. Nonetheless, there are periods marked by declining liquidity metrics and rising liabilities, which may warrant cautious monitoring. The cash ratio's fluctuations suggest shifts in the company’s short-term financial management and possibly operational or investment activities influencing cash reserves relative to liabilities.