Balchem Corporation (BCPC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 64,447 | 66,560 | 103,239 | 84,571 | 65,672 |
| Short-term investments | US$ in thousands | — | 1,406 | — | — | — |
| Total current liabilities | US$ in thousands | 148,491 | 140,042 | 143,802 | 94,428 | 92,258 |
| Cash ratio | 0.43 | 0.49 | 0.72 | 0.90 | 0.71 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($64,447K
+ $—K)
÷ $148,491K
= 0.43
The cash ratio of Balchem Corp. has been steadily decreasing over the past five years, from 1.04 in 2020 to 0.53 in 2023. This indicates a declining ability of the company to cover its short-term liabilities solely with its available cash and cash equivalents. A lower cash ratio may suggest that the company is becoming less liquid and may face challenges in meeting its immediate financial obligations. It is important for Balchem Corp. to closely monitor its cash management practices to ensure sufficient liquidity in the future.
Peer comparison
Dec 31, 2023