Balchem Corporation (BCPC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 49,515 | 64,447 | 66,560 | 103,239 | 84,571 |
| Short-term investments | US$ in thousands | — | — | 1,406 | — | — |
| Total current liabilities | US$ in thousands | 157,685 | 148,491 | 140,042 | 143,802 | 94,428 |
| Cash ratio | 0.31 | 0.43 | 0.49 | 0.72 | 0.90 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($49,515K
+ $—K)
÷ $157,685K
= 0.31
The cash ratio of Balchem Corporation has shown a declining trend over the years, decreasing from 0.90 at December 31, 2020, to 0.31 at December 31, 2024. This indicates that the company's ability to cover its short-term liabilities solely with its cash and cash equivalents has weakened progressively. A declining cash ratio may raise concerns regarding the company's liquidity position and its ability to meet its immediate obligations without relying on other current assets or external financing. Balchem Corporation may need to closely monitor and manage its cash resources to ensure it maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2024