Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Current Ratio

The current ratio displayed a general upward trend from March 2021 through March 2024, increasing from 3.12 to a peak of 5.69 in December 2023, indicating improving short-term liquidity over this period. Following this peak, the ratio showed a gradual decline, dropping to 4.06 by September 2025. Despite the decline in the latter periods, the current ratio consistently remained above 3.0, suggesting a strong ability to cover short-term liabilities with current assets throughout the entire timeframe.

Quick Ratio

The quick ratio also experienced a steady increase from 2.39 in March 2021 to a high of 4.82 in December 2023. This positive momentum reflects enhanced liquidity in terms of more liquid current assets relative to current liabilities. However, similar to the current ratio, the quick ratio began to diminish after this peak, declining to 3.19 by September 2025. Despite this reduction, the quick ratio maintained a level above 2.0 in most quarters, indicating a healthy liquidity position excluding inventory.

Cash Ratio

The cash ratio showed notable improvement, rising from 1.09 in March 2021 to 3.17 in December 2023, reflecting an increased proportion of cash and cash equivalents relative to current liabilities. This suggests strengthened immediate liquidity and cash availability over the observed period. After reaching this peak, the cash ratio declined gradually to 1.91 by September 2025. Even with this decline, ratios above 1.0 indicate sufficiency of cash reserves to cover current obligations without reliance on other current assets.

Overall Liquidity Trends

All three liquidity ratios – current, quick, and cash ratios – exhibit similar patterns of significant improvement from early 2021 through the end of 2023, followed by a moderate decline through late 2025. The increases through 2023 imply a strengthening liquidity position, with growing capacity to meet both immediate and short-term financial obligations. The subsequent declines suggest a cautious reversion toward more moderate liquidity levels, though still maintaining sound solvency benchmarks relative to current liabilities.

The analysis of the quarterly financial data reveals several key trends regarding liquidity and working capital management.

Current Assets

Current assets show an overall increasing trend from March 31, 2021, through September 30, 2023, reaching a peak of approximately $19.48 billion. After this peak, a slight decline is observed with fluctuations, closing around $17.98 billion by September 30, 2025. The growth phase suggests strengthening liquidity, followed by a marginal decrease toward the later periods.

Current Liabilities

Current liabilities exhibit more volatility compared to current assets. From a starting point of about $3.22 billion in early 2021, they peaked slightly above $3.93 billion by December 31, 2021, then decreased steadily until September 30, 2022. In subsequent quarters, liabilities fluctuate but generally trend upward toward the end of the period, reaching around $4.43 billion by September 30, 2025. This indicates a varying approach to short-term obligations, with some increase in liabilities amid stable to declining assets in the latter quarters.

Current Ratio

The current ratio, an indicator of short-term liquidity, shows a strong upward trend from 3.12 in March 2021 to a peak around 5.69 at December 31, 2023. This reflects an improving ability to cover current liabilities with current assets. Following this peak, the ratio declines gradually to approximately 4.06 by September 2025. Despite this decrease, the ratio remains above 4.0, signifying a robust liquidity position throughout the period. The decline after 2023 suggests either a relative increase in liabilities or a reduction in assets, or both, impacting liquidity but remaining within a comfortable range.

Overall, the data portrays a company with strong liquidity management, reflected by high current ratios well above the commonly acceptable threshold of 1. The growth in current assets outpaces liabilities for most of the time frame, supporting operational stability. The latter period's slight reversals in asset levels and increasing liabilities warrant monitoring, but do not currently indicate liquidity concerns.

The analysis of the quarterly financial data over the reported periods reveals several key trends in liquidity and short-term financial stability.

Total Quick Assets

The total quick assets generally show an upward trend from the beginning to the end of the period, increasing from approximately 7.68 billion US dollars to a peak near 16.51 billion US dollars during late 2023. Following this peak, there are some fluctuations, with values slightly declining and then stabilizing around 14.13 billion US dollars by late 2025. This overall rise suggests a strengthening in liquid assets available to meet immediate obligations over the time frame.

Current Liabilities

Current liabilities fluctuate more modestly compared to quick assets, starting at around 3.22 billion US dollars and experiencing periods of increase and decrease. The liabilities decline in early 2022, reaching a low near 2.88 billion US dollars in the third quarter of 2022, before gradually rising again towards the later periods, finishing at approximately 4.43 billion US dollars by late 2025. This increase toward the end indicates higher short-term obligations during recent quarters.

Quick Ratio

The quick ratio exhibits a strong upward movement starting in early 2021, rising from 2.39 to above 4.8 by the end of 2023, reflecting considerable improvement in the company's ability to cover current liabilities with quick assets. However, after this peak, the quick ratio declines steadily to about 3.19 by the third quarter of 2025. Despite the decline, the ratio remains above 3.0, indicating continued robust liquidity positions, though with a relative decrease in cushion compared to previous highs.

Overall, the company demonstrates a significant enhancement in liquid asset levels relative to current liabilities through most of the analyzed timeframe, culminating in strong liquidity ratios. The later quarters show a moderation in this trend, with both total quick assets and quick ratios decreasing somewhat while current liabilities increase, suggesting a shift that may warrant further monitoring to ensure sustained short-term financial strength.

Total Cash Assets

The total cash assets demonstrated a general upward trend from March 2021 to December 2023, increasing from approximately $3.5 billion to over $10.8 billion. After reaching this peak, the cash assets experienced a decline beginning in early 2024, dropping to about $9.0 billion by December 2024. This downward trend continued into 2025, with the cash assets falling further to approximately $8.4 billion by September 2025. Despite this recent decline, the overall level of cash assets remains significantly higher compared to the initial period in 2021.

Current Liabilities

Current liabilities showed some variability over the period but generally ranged between $3.0 billion and $4.4 billion. The liabilities peaked around $3.9 billion in December 2024 and September 2025. There were periods of relative stability, such as mid-2022 to early 2023, with liabilities around $3.1 billion to $3.6 billion. Notably, there was a slight reduction observed in 2022, followed by an increase towards the end of the dataset.

Cash Ratio

The cash ratio started slightly above 1.0 in the first quarter of 2021, indicating cash assets were roughly equal to current liabilities. This ratio steadily increased over the following years, peaking at just over 3.1 in December 2023. This suggests a strong liquidity position, as cash assets exceeded current liabilities by more than triple at the peak. However, from early 2024 onward, the ratio declined gradually to about 1.9 by September 2025, signaling a reduction in liquidity relative to current liabilities, but still remaining well above the baseline level seen at the beginning of the period.

Summary of Trends

Overall, the company exhibited substantial growth in cash holdings through 2023, which improved its ability to cover short-term obligations comfortably, as evidenced by rising cash ratios. Although there was a decline in cash assets and liquidity ratios in 2024 and 2025, the liquidity position at the end of the analyzed period remained stronger than at the start. Current liabilities fluctuated but did not demonstrate a clear long-term trend, suggesting a relatively stable level of short-term obligations throughout the period.