Balchem Corporation (BCPC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 314,242 | 335,803 | 322,232 | 266,888 | 254,946 |
| Total current liabilities | US$ in thousands | 148,491 | 140,042 | 143,802 | 94,428 | 92,258 |
| Current ratio | 2.12 | 2.40 | 2.24 | 2.83 | 2.76 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $314,242K ÷ $148,491K
= 2.12
The current ratio of Balchem Corp. has exhibited some variability over the past five years, ranging from 2.12 to 2.83. A current ratio above 2 generally indicates that the company has a strong ability to cover its short-term liabilities with its current assets.
The decreasing trend from 2019 to 2021, when the current ratio declined from 2.76 to 2.24, suggests a potential decrease in liquidity or an increase in short-term liabilities relative to current assets during this period. On the other hand, the significant increase to 2.83 in 2020 followed by a slight decrease to 2.40 in 2022 indicates a more favorable liquidity position.
Overall, while the current ratio of Balchem Corp. has fluctuated over the past five years, it consistently remains above 2, indicating a generally robust liquidity position and the ability to meet short-term obligations with ease. Further analysis of specific components of current assets and liabilities could provide deeper insights into the company's liquidity management.
Peer comparison
Dec 31, 2023