Balchem Corporation (BCPC)

Liquidity ratios

	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
Current ratio	2.12	3.16	2.94	2.88	2.40	2.59	2.62	2.59	2.24	2.86	2.85	3.17	2.83	3.95	3.88	3.77	2.76	3.33	3.73	3.47
Quick ratio	1.28	1.91	1.68	1.65	1.42	1.40	1.50	1.63	1.53	1.91	1.92	2.20	1.94	2.60	2.55	2.51	1.72	2.13	2.31	2.18
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

Balchem Corp.'s liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to pay off short-term obligations with its current assets, has generally been above 2, indicating a healthy level of liquidity. However, there was a significant increase in Q3 2023, which reached a high of 3.16 before slightly decreasing in the following quarter.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. It has generally been above 1, highlighting the company's ability to meet short-term liabilities without relying on selling inventory. Similar to the current ratio, there was a notable increase in Q3 2023 before a slight decrease in Q4 2023.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has remained below 1 for all quarters, indicating that Balchem Corp. may not have sufficient cash on hand to cover its current liabilities. However, the company's cash ratio has shown some improvement over the quarters, with a notable increase in Q3 and Q4 2023.

Overall, Balchem Corp. has maintained relatively strong liquidity positions based on its current, quick, and cash ratios. However, investors and stakeholders should continue to monitor these ratios to ensure the company can meet its short-term financial obligations effectively.

Additional liquidity measure

		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 conversion cycle	days	81.35	89.42	86.91	89.91	85.34	93.11	102.40	97.71	76.49	82.96	79.71	86.92	86.61	94.45	100.05	107.47	92.35	84.86	90.93	90.73

The cash conversion cycle of Balchem Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 81.35 days, showing an improvement compared to the previous quarter's 89.42 days. This suggests that Balchem Corp. was able to efficiently convert its investments in raw materials into cash during this period.

However, it is important to note that the cash conversion cycle had been on an upward trend since Q2 2022 when it was at its lowest point of 97.71 days. This trend reached its peak in Q3 2022 at 102.40 days before showing some improvement in subsequent quarters.

Overall, the company's cash conversion cycle has varied between 81.35 days and 102.40 days during the past eight quarters, indicating fluctuations in efficiency in managing its working capital. Balchem Corp. should continue to monitor and optimize its cash conversion cycle to ensure effective management of its cash flows and working capital.