Balchem Corporation (BCPC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 49,515 | 64,447 | 66,560 | 103,239 | 84,571 |
| Short-term investments | US$ in thousands | — | — | 1,406 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 157,685 | 148,491 | 140,042 | 143,802 | 94,428 |
| Quick ratio | 0.31 | 0.43 | 0.49 | 0.72 | 0.90 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($49,515K
+ $—K
+ $—K)
÷ $157,685K
= 0.31
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.
Balchem Corporation's quick ratio has been decreasing over the years, from 0.90 in December 31, 2020, to 0.31 in December 31, 2024. This downward trend suggests that the company may be facing challenges in meeting its short-term obligations with its readily available liquid assets.
A quick ratio of 0.31 as of December 31, 2024, indicates that Balchem Corporation only has $0.31 of liquid assets available to cover each $1 of its short-term liabilities. This may raise concerns about the company's liquidity and its ability to pay off its current obligations in a timely manner.
It is important for investors and stakeholders to closely monitor Balchem Corporation's quick ratio and assess the company’s liquidity management strategies to ensure its financial health and sustainability in the short term.
Peer comparison
Dec 31, 2024