Balchem Corporation (BCPC)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 64,447 | 76,952 | 66,856 | 60,199 | 66,560 | 56,489 | 76,183 | 64,466 | 103,239 | 90,013 | 79,902 | 88,535 | 84,571 | 78,967 | 76,407 | 73,959 | 65,672 | 59,404 | 41,674 | 39,004 |
| Short-term investments | US$ in thousands | — | — | — | 730 | 1,406 | 1,612 | 1,048 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 148,491 | 108,038 | 114,386 | 116,523 | 140,042 | 142,085 | 144,143 | 123,529 | 143,802 | 104,926 | 100,759 | 88,763 | 94,428 | 68,413 | 67,960 | 71,720 | 92,258 | 72,023 | 62,091 | 63,810 |
| Cash ratio | 0.43 | 0.71 | 0.58 | 0.52 | 0.49 | 0.41 | 0.54 | 0.52 | 0.72 | 0.86 | 0.79 | 1.00 | 0.90 | 1.15 | 1.12 | 1.03 | 0.71 | 0.82 | 0.67 | 0.61 |
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 fluctuated over the past eight quarters, ranging from 0.53 to 0.89. The cash ratio measures the company's ability to cover its short-term liabilities with readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
In Q3 2023, Balchem Corp. had a cash ratio of 0.89, which was the highest among the quarters analyzed. This indicates that the company had a higher proportion of cash and cash equivalents relative to its current liabilities during that period.
Conversely, in Q4 2023, the cash ratio decreased to 0.53, which was the lowest recorded ratio during the period. This suggests that Balchem Corp. may have had relatively lower cash reserves compared to its short-term liabilities at that time.
It is essential to monitor the cash ratio over time to assess the company's liquidity position and its ability to meet its short-term obligations. An increasing trend in the cash ratio can signify improved liquidity management, while a decreasing trend may raise concerns about the company's ability to cover its short-term liabilities with available cash resources.
Peer comparison
Dec 31, 2023