Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Moderna Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 3.42 | 2.73 | 1.76 | 1.43 | 7.89 | |
| Quick ratio | 3.15 | 2.29 | 1.52 | 1.37 | 7.74 | |
| Cash ratio | 2.85 | 2.01 | 1.18 | 1.05 | 7.71 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Current Ratio
- The current ratio experienced a significant decline from 7.89 in 2019 to 1.43 in 2020, indicating a reduction in short-term liquidity relative to current liabilities. Following this sharp decrease, the ratio gradually improved over the subsequent years, rising to 1.76 in 2021, 2.73 in 2022, and reaching 3.42 in 2023. This trend suggests strengthening liquidity and an enhanced ability to cover short-term obligations over time.
- Quick Ratio
- Similar to the current ratio, the quick ratio declined markedly from 7.74 in 2019 to 1.37 in 2020, revealing a decrease in immediate liquidity excluding inventory. Subsequent years showed a recovery trajectory with the ratio climbing to 1.52 in 2021, 2.29 in 2022, and further to 3.15 in 2023, indicating improving availability of liquid assets to meet short-term liabilities.
- Cash Ratio
- The cash ratio followed a comparable pattern, dropping from a high of 7.71 in 2019 to 1.05 in 2020, highlighting a notable decrease in cash and cash equivalents relative to current liabilities. Recovery was evident as the ratio increased to 1.18 in 2021, then more substantially to 2.01 in 2022, and further to 2.85 in 2023. This demonstrates strengthening cash reserves and better immediate liquidity positions in recent years.
- Overall Analysis
- A pronounced decline in all liquidity ratios occurred between 2019 and 2020, which could suggest increased current liabilities, decreased current assets, or a combination of both, impacting liquidity. From 2020 onward, a consistent improvement trend is evident across all three liquidity measures, indicating enhanced financial stability and a progressively stronger liquidity position. The cash ratio's more modest initial recovery followed by sharper growth suggests that cash availability specifically improved steadily after 2021. The continued upward trajectory by 2023 reflects strong liquidity management and an increasing capacity to meet obligations without liquidity stress.
Current Ratio
Moderna Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 10,325) | 13,431) | 16,071) | 6,298) | 1,129) | |
| Current liabilities | 3,015) | 4,923) | 9,128) | 4,389) | 143) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 3.42 | 2.73 | 1.76 | 1.43 | 7.89 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.87 | 0.96 | 0.79 | 0.84 | — | |
| Amgen Inc. | 1.65 | 1.41 | 1.59 | 1.81 | — | |
| Bristol-Myers Squibb Co. | 1.43 | 1.25 | 1.52 | 1.58 | — | |
| Danaher Corp. | 1.68 | 1.89 | 1.43 | 1.86 | — | |
| Eli Lilly & Co. | 0.94 | 1.05 | 1.23 | 1.40 | — | |
| Gilead Sciences Inc. | 1.43 | 1.29 | 1.27 | 1.40 | — | |
| Johnson & Johnson | 1.16 | 0.99 | 1.35 | 1.21 | — | |
| Merck & Co. Inc. | 1.25 | 1.47 | 1.27 | 1.02 | — | |
| Pfizer Inc. | 0.91 | 1.22 | 1.40 | 1.35 | — | |
| Regeneron Pharmaceuticals Inc. | 5.69 | 5.06 | 3.56 | 3.63 | — | |
| Thermo Fisher Scientific Inc. | 1.75 | 1.48 | 1.50 | 2.13 | — | |
| Vertex Pharmaceuticals Inc. | 3.99 | 4.83 | 4.46 | 4.33 | — | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.27 | 1.30 | 1.36 | 1.37 | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.17 | 1.19 | 1.24 | 1.24 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 10,325 ÷ 3,015 = 3.42
2 Click competitor name to see calculations.
The financial data indicates significant fluctuations in current assets, current liabilities, and the current ratio over the analyzed five-year period. Examination of these trends provides insights into the company’s liquidity and short-term financial health.
- Current Assets
- Current assets increased markedly from US$1,129 million at the end of 2019 to a peak of US$16,071 million at the end of 2021. Subsequently, current assets declined to US$13,431 million in 2022 and further to US$10,325 million in 2023. This pattern suggests an initial accumulation of liquid and short-term assets, followed by a reduction, possibly indicating a decrease in cash reserves or inventory levels after 2021.
- Current Liabilities
- Current liabilities exhibited a sharp rise from US$143 million in 2019 to US$9,128 million in 2021. After peaking in 2021, liabilities declined significantly to US$4,923 million in 2022 and further to US$3,015 million in 2023. This reduction implies improved management or repayment of short-term obligations after 2021, potentially enhancing financial stability.
- Current Ratio
- The current ratio, a key liquidity metric, decreased steeply from 7.89 in 2019 to 1.43 in 2020, reflecting a shift from a very high liquidity position to a near baseline level. It improved to 1.76 in 2021, rising further to 2.73 in 2022 and reaching 3.42 in 2023. This upward trend in the current ratio following 2020 signals strengthening short-term liquidity and a better capacity to cover current liabilities with current assets.
Overall, the data reveals a period of expansion in both assets and liabilities until 2021, followed by a consolidation phase characterized by reduction in both figures but an improvement in liquidity ratios. The strengthening current ratio from 2020 onward suggests enhanced financial resilience and prudence in managing working capital.
Quick Ratio
Moderna Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,907) | 3,205) | 6,848) | 2,624) | 236) | |
| Investments | 5,697) | 6,697) | 3,879) | 1,984) | 867) | |
| Accounts receivable, net | 892) | 1,385) | 3,175) | 1,391) | 5) | |
| Total quick assets | 9,496) | 11,287) | 13,902) | 5,998) | 1,108) | |
| Current liabilities | 3,015) | 4,923) | 9,128) | 4,389) | 143) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.15 | 2.29 | 1.52 | 1.37 | 7.74 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.63 | 0.69 | 0.56 | 0.60 | — | |
| Amgen Inc. | 0.99 | 0.95 | 1.06 | 1.30 | — | |
| Bristol-Myers Squibb Co. | 1.04 | 0.87 | 1.20 | 1.28 | — | |
| Danaher Corp. | 1.18 | 1.30 | 0.89 | 1.36 | — | |
| Eli Lilly & Co. | 0.52 | 0.63 | 0.80 | 0.85 | — | |
| Gilead Sciences Inc. | 1.06 | 0.99 | 0.95 | 1.08 | — | |
| Johnson & Johnson | 0.82 | 0.71 | 1.04 | 0.91 | — | |
| Merck & Co. Inc. | 0.68 | 0.93 | 0.73 | 0.58 | — | |
| Pfizer Inc. | 0.50 | 0.80 | 1.00 | 0.78 | — | |
| Regeneron Pharmaceuticals Inc. | 4.82 | 4.16 | 2.98 | 2.86 | — | |
| Thermo Fisher Scientific Inc. | 1.27 | 1.06 | 1.00 | 1.63 | — | |
| Vertex Pharmaceuticals Inc. | 3.60 | 4.46 | 4.04 | 4.02 | — | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.85 | 0.91 | 0.98 | 0.98 | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.85 | 0.88 | 0.93 | 0.91 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,496 ÷ 3,015 = 3.15
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the liquidity position of the company over the five-year period analyzed.
- Total Quick Assets
- The total quick assets experienced a substantial increase from 2019 to 2021, rising from 1,108 million US dollars to 13,902 million US dollars, representing a significant strengthening of liquid asset holdings. However, this upward trend reversed in subsequent years, with total quick assets declining to 11,287 million US dollars in 2022 and further down to 9,496 million US dollars by the end of 2023. Despite the decrease after 2021, the value of quick assets remains considerably higher than the initial 2019 figure.
- Current Liabilities
- Current liabilities showed a marked growth over the period. Beginning at 143 million US dollars in 2019, liabilities surged to 4,389 million by the end of 2020 and peaked at 9,128 million in 2021. This peak was followed by a reduction in liabilities, falling to 4,923 million in 2022 and further to 3,015 million in 2023. The trend indicates a period of rapid increase in short-term obligations up to 2021, with subsequent deleveraging or improved liability management in the following years.
- Quick Ratio
- The quick ratio, an important measure of liquidity, started exceptionally high at 7.74 in 2019, reflecting an extremely strong coverage of current liabilities by liquid assets. This ratio dropped significantly to 1.37 in 2020, suggesting that the growth in current liabilities outpaced quick assets during that year. Thereafter, the quick ratio showed a steady improvement, increasing to 1.52 in 2021, 2.29 in 2022, and reaching 3.15 by 2023. This gradual rebound illustrates an ongoing enhancement in the company's liquidity position, with liquid assets increasingly sufficient to cover short-term liabilities.
Overall, the data indicates that the company experienced rapid growth in both liquid assets and current liabilities through 2021, resulting in a compressed liquidity ratio. Following this period, the company improved its liquidity structure by reducing liabilities and managing its quick assets more effectively, as shown by the upward trend in the quick ratio from 2021 onwards. Despite the decline in total quick assets since its peak in 2021, the liquidity ratio improvements reflect enhanced financial stability in short-term obligations coverage.
Cash Ratio
Moderna Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,907) | 3,205) | 6,848) | 2,624) | 236) | |
| Investments | 5,697) | 6,697) | 3,879) | 1,984) | 867) | |
| Total cash assets | 8,604) | 9,902) | 10,727) | 4,608) | 1,103) | |
| Current liabilities | 3,015) | 4,923) | 9,128) | 4,389) | 143) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.85 | 2.01 | 1.18 | 1.05 | 7.71 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.34 | 0.31 | 0.28 | 0.30 | — | |
| Amgen Inc. | 0.60 | 0.59 | 0.66 | 0.91 | — | |
| Bristol-Myers Squibb Co. | 0.55 | 0.42 | 0.78 | 0.83 | — | |
| Danaher Corp. | 0.71 | 0.71 | 0.32 | 0.82 | — | |
| Eli Lilly & Co. | 0.11 | 0.13 | 0.26 | 0.29 | — | |
| Gilead Sciences Inc. | 0.64 | 0.57 | 0.56 | 0.65 | — | |
| Johnson & Johnson | 0.50 | 0.42 | 0.70 | 0.59 | — | |
| Merck & Co. Inc. | 0.28 | 0.54 | 0.34 | 0.30 | — | |
| Pfizer Inc. | 0.27 | 0.54 | 0.73 | 0.47 | — | |
| Regeneron Pharmaceuticals Inc. | 3.17 | 2.46 | 1.45 | 1.33 | — | |
| Thermo Fisher Scientific Inc. | 0.58 | 0.50 | 0.33 | 1.00 | — | |
| Vertex Pharmaceuticals Inc. | 3.16 | 3.93 | 3.51 | 3.55 | — | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.47 | 0.52 | 0.58 | 0.59 | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.44 | 0.49 | 0.54 | 0.53 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,604 ÷ 3,015 = 2.85
2 Click competitor name to see calculations.
- Total cash assets
- The data shows a significant increase in total cash assets from 2019 to 2021, rising from $1,103 million to $10,727 million. However, after reaching this peak in 2021, total cash assets experienced a decline in the subsequent years, falling to $9,902 million in 2022 and further to $8,604 million in 2023. Despite this decrease, cash assets remain substantially higher than the 2019 level.
- Current liabilities
- Current liabilities exhibited a steep rise from $143 million in 2019 to $4,389 million in 2020, followed by continued growth to $9,128 million in 2021. Thereafter, liabilities decreased notably to $4,923 million in 2022 and further dropped to $3,015 million in 2023. This indicates a reduction in short-term obligations after a period of rapid increase.
- Cash ratio
- The cash ratio shows a sharp decline from a high of 7.71 in 2019 to around 1.05 in 2020, indicating a decrease in liquidity relative to current liabilities. Subsequently, the ratio slightly improved to 1.18 in 2021 and increased more substantially to 2.01 in 2022 and 2.85 in 2023. This trend suggests a strengthening of immediate liquidity over the last two years, reflecting better coverage of current liabilities by cash assets.
- Overall analysis
- The financial data reflects a period of rapid growth in both cash assets and liabilities, peaking in 2021, followed by a contraction phase through 2023. The company’s liquidity measures, as seen through the cash ratio, initially weakened sharply from 2019 to 2020 but have since shown a steady recovery. The declining liabilities combined with relatively high cash assets in recent years highlight an improvement in the company’s short-term financial stability and liquidity position.