Name: Cash Ratio

Definition: The cash ratio measures a company's ability to pay off all of its current liabilities immediately using only its most liquid assets: cash and cash equivalents. Unlike the current ratio and quick ratio, it excludes accounts receivable and inventory, making it the most conservative measure of liquidity.

Interpretation:
• In '2021', NVAX's cash ratio was 0.63, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2021' stood at 2.99.
• In '2022', NVAX's cash ratio was 0.54, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2022' stood at 2.73. Industry average declined by 0.26 from previous year.
• In '2023', NVAX's cash ratio was 0.35, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2023' stood at 2.42. Industry average declined by 0.31 from previous year.
• In '2024', NVAX's cash ratio was 0.46, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2024' stood at 2.25. Industry average declined by 0.17 from previous year.
Overall, NVAX's cash ratio has been volatile but showed a downward trend over the past 4 years.

Formula: Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities

Good Range: Generally, a cash ratio between 0.2 and 0.5 is considered healthy for most industries.