Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Regeneron Pharmaceuticals Inc., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.73 | 5.69 | 5.06 | 3.56 | 3.63 | |
| Quick ratio | 3.86 | 4.82 | 4.16 | 2.98 | 2.86 | |
| Cash ratio | 2.28 | 3.17 | 2.46 | 1.45 | 1.33 |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Current Ratio
- The current ratio demonstrated an overall upward trend from 2020 to 2024, starting at 3.63 in 2020 and peaking at 5.69 in 2023, before slightly declining to 4.73 in 2024. This indicates an improvement in the company's ability to cover its short-term liabilities with its short-term assets, reaching a maximum liquidity position in 2023.
- Quick Ratio
- The quick ratio also showed a consistent increase over the observed period, moving from 2.86 in 2020 to 4.82 in 2023, followed by a decrease to 3.86 in 2024. This trend suggests an enhancement in the company's near-cash assets relative to its current liabilities, reflecting stronger immediate liquidity that peaked in 2023 before experiencing a moderate reduction.
- Cash Ratio
- Similar to the other liquidity measures, the cash ratio rose significantly from 1.33 in 2020 to a peak of 3.17 in 2023, before declining to 2.28 in 2024. This indicates that the company substantially increased its most liquid asset position over the years, achieving the highest cash coverage against current liabilities in 2023, with a subsequent decrease that still maintained a strong liquidity stance.
Current Ratio
Regeneron Pharmaceuticals Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 18,660,900) | 19,479,200) | 15,884,100) | 14,014,900) | 9,779,100) | |
| Current liabilities | 3,944,300) | 3,423,400) | 3,141,300) | 3,932,500) | 2,697,400) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.73 | 5.69 | 5.06 | 3.56 | 3.63 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.66 | 0.87 | 0.96 | 0.79 | 0.84 | |
| Amgen Inc. | 1.26 | 1.65 | 1.41 | 1.59 | 1.81 | |
| Bristol-Myers Squibb Co. | 1.25 | 1.43 | 1.25 | 1.52 | 1.58 | |
| Danaher Corp. | 1.40 | 1.68 | 1.89 | 1.43 | 1.86 | |
| Eli Lilly & Co. | 1.15 | 0.94 | 1.05 | 1.23 | 1.40 | |
| Gilead Sciences Inc. | 1.60 | 1.43 | 1.29 | 1.27 | 1.40 | |
| Johnson & Johnson | 1.11 | 1.16 | 0.99 | 1.35 | 1.21 | |
| Merck & Co. Inc. | 1.36 | 1.25 | 1.47 | 1.27 | 1.02 | |
| Pfizer Inc. | 1.17 | 0.91 | 1.22 | 1.40 | 1.35 | |
| Thermo Fisher Scientific Inc. | 1.66 | 1.75 | 1.48 | 1.50 | 2.13 | |
| Vertex Pharmaceuticals Inc. | 2.69 | 3.99 | 4.83 | 4.46 | 4.33 | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.24 | 1.27 | 1.30 | 1.36 | 1.37 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.14 | 1.17 | 1.19 | 1.24 | 1.24 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 18,660,900 ÷ 3,944,300 = 4.73
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrated a consistent upward trend from 2020 to 2023, increasing from approximately 9,779 million US dollars to nearly 19,479 million US dollars. However, there was a slight decline in 2024, with current assets decreasing to about 18,661 million US dollars. This indicates strong growth in liquid assets over the first four years, followed by a mild contraction in the most recent period.
- Current Liabilities
- Current liabilities rose from roughly 2,697 million US dollars in 2020 to a peak of about 3,932 million US dollars in 2021. Subsequently, they declined to 3,141 million US dollars by 2022 before increasing once again in the two subsequent years, reaching approximately 3,944 million US dollars in 2024. This pattern reflects some volatility in short-term obligations but overall an increasing trend by the end of the period.
- Current Ratio
- The current ratio remained relatively stable between 2020 and 2021, standing near 3.6. It then showed significant improvement, reaching a high of 5.69 in 2023 before decreasing to 4.73 in 2024. Despite the drop in the latest year, the ratio consistently stayed above 3.5 throughout the entire period, indicating a strong liquidity position, with the capacity to cover current liabilities multiple times over.
Quick Ratio
Regeneron Pharmaceuticals Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,488,200) | 2,730,000) | 3,105,900) | 2,885,600) | 2,193,700) | |
| Marketable securities | 6,524,300) | 8,114,800) | 4,636,400) | 2,809,100) | 1,393,300) | |
| Accounts receivable, net | 6,211,900) | 5,667,300) | 5,328,700) | 6,036,500) | 4,114,700) | |
| Total quick assets | 15,224,400) | 16,512,100) | 13,071,000) | 11,731,200) | 7,701,700) | |
| Current liabilities | 3,944,300) | 3,423,400) | 3,141,300) | 3,932,500) | 2,697,400) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.86 | 4.82 | 4.16 | 2.98 | 2.86 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.43 | 0.63 | 0.69 | 0.56 | 0.60 | |
| Amgen Inc. | 0.81 | 0.99 | 0.95 | 1.06 | 1.30 | |
| Bristol-Myers Squibb Co. | 0.91 | 1.04 | 0.87 | 1.20 | 1.28 | |
| Danaher Corp. | 0.83 | 1.18 | 1.30 | 0.89 | 1.36 | |
| Eli Lilly & Co. | 0.59 | 0.52 | 0.63 | 0.80 | 0.85 | |
| Gilead Sciences Inc. | 1.20 | 1.06 | 0.99 | 0.95 | 1.08 | |
| Johnson & Johnson | 0.78 | 0.82 | 0.71 | 1.04 | 0.91 | |
| Merck & Co. Inc. | 0.84 | 0.68 | 0.93 | 0.73 | 0.58 | |
| Pfizer Inc. | 0.74 | 0.50 | 0.80 | 1.00 | 0.78 | |
| Thermo Fisher Scientific Inc. | 1.14 | 1.27 | 1.06 | 1.00 | 1.63 | |
| Vertex Pharmaceuticals Inc. | 2.17 | 3.60 | 4.46 | 4.04 | 4.02 | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.82 | 0.85 | 0.91 | 0.98 | 0.98 | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.83 | 0.85 | 0.88 | 0.93 | 0.91 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 15,224,400 ÷ 3,944,300 = 3.86
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a consistent upward trend from 2020 through 2023, increasing from approximately 7.7 billion US dollars to 16.5 billion US dollars. This reflects a substantial enhancement in liquid assets available over this period. However, in 2024, there was a slight decline to approximately 15.2 billion US dollars, indicating a modest reduction in quick assets compared to the previous year.
- Current Liabilities
- Current liabilities experienced growth overall but exhibited fluctuations during the observed period. Specifically, liabilities rose from around 2.7 billion US dollars in 2020 to 3.9 billion US dollars in 2021, followed by a decrease in 2022 to approximately 3.1 billion US dollars. Subsequently, liabilities increased again in 2023 and 2024, reaching about 3.9 billion US dollars by 2024. This variability suggests changes in short-term obligations possibly related to operational or financing activities.
- Quick Ratio
- The quick ratio exhibited an increasingly favorable liquidity position from 2020 through 2023, moving from 2.86 to a peak of 4.82. This indicates that the company significantly improved its ability to cover current liabilities with its most liquid assets during this period. However, in 2024, this ratio decreased to 3.86, albeit remaining well above 1, which still reflects a strong liquidity position.
- Overall Analysis
- The data highlights an overall strengthening of the company's liquidity from 2020 up to 2023, driven by substantial increases in quick assets outpacing the growth in current liabilities. The decline in both quick assets and quick ratio in 2024 suggests a cautious reduction in liquid assets or a relative increase in current liabilities. Nevertheless, the quick ratio remains robust, indicating maintained capability to meet short-term obligations. The fluctuations in current liabilities warrant further monitoring to understand their drivers and potential impact on financial stability.
Cash Ratio
Regeneron Pharmaceuticals Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,488,200) | 2,730,000) | 3,105,900) | 2,885,600) | 2,193,700) | |
| Marketable securities | 6,524,300) | 8,114,800) | 4,636,400) | 2,809,100) | 1,393,300) | |
| Total cash assets | 9,012,500) | 10,844,800) | 7,742,300) | 5,694,700) | 3,587,000) | |
| Current liabilities | 3,944,300) | 3,423,400) | 3,141,300) | 3,932,500) | 2,697,400) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.28 | 3.17 | 2.46 | 1.45 | 1.33 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.14 | 0.34 | 0.31 | 0.28 | 0.30 | |
| Amgen Inc. | 0.52 | 0.60 | 0.59 | 0.66 | 0.91 | |
| Bristol-Myers Squibb Co. | 0.46 | 0.55 | 0.42 | 0.78 | 0.83 | |
| Danaher Corp. | 0.31 | 0.71 | 0.71 | 0.32 | 0.82 | |
| Eli Lilly & Co. | 0.12 | 0.11 | 0.13 | 0.26 | 0.29 | |
| Gilead Sciences Inc. | 0.83 | 0.64 | 0.57 | 0.56 | 0.65 | |
| Johnson & Johnson | 0.49 | 0.50 | 0.42 | 0.70 | 0.59 | |
| Merck & Co. Inc. | 0.48 | 0.28 | 0.54 | 0.34 | 0.30 | |
| Pfizer Inc. | 0.48 | 0.27 | 0.54 | 0.73 | 0.47 | |
| Thermo Fisher Scientific Inc. | 0.42 | 0.58 | 0.50 | 0.33 | 1.00 | |
| Vertex Pharmaceuticals Inc. | 1.72 | 3.16 | 3.93 | 3.51 | 3.55 | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.45 | 0.47 | 0.52 | 0.58 | 0.59 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.41 | 0.44 | 0.49 | 0.54 | 0.53 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,012,500 ÷ 3,944,300 = 2.28
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrate a consistent upward trend from 2020 to 2023, increasing from approximately $3.59 billion to about $10.84 billion. However, there is a decline observed in 2024, where cash assets decrease to roughly $9.01 billion. Despite this drop, the overall increase over the five-year period remains substantial.
- Current liabilities
- Current liabilities exhibit fluctuations over the analyzed period. Starting at roughly $2.70 billion in 2020, they rise significantly to approximately $3.93 billion in 2021, then decline to about $3.14 billion in 2022. Thereafter, liabilities increase again to $3.42 billion in 2023, and reach the highest value of approximately $3.94 billion in 2024. This indicates a variable pattern without a consistent directional trend.
- Cash ratio
- The cash ratio shows an overall improving liquidity position from 2020 through 2023. Beginning with a ratio of 1.33 in 2020, it increases to 1.45 in 2021, then rises markedly to 2.46 in 2022 and further to 3.17 in 2023, indicating that cash and cash equivalents increasingly cover current liabilities over time. In 2024, the ratio decreases to 2.28, signaling a reduction in liquidity relative to current liabilities but still reflecting a strong cash position.
- Insights
- The data reflect a trend of growing cash reserves which enhances liquidity, supported by the rising cash ratio through most of the period. The company maintains a significant buffer of cash relative to its current liabilities, suggesting a conservative liquidity management approach. The fluctuations in current liabilities could indicate changes in short-term obligations or operational dynamics. The decline in cash assets and cash ratio in 2024 warrants attention, as it may signal shifts in cash management or capital deployment strategies.