Balchem Corporation (BCPC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 64,447 | 66,560 | 103,239 | 84,571 | 65,672 |
| Short-term investments | US$ in thousands | — | 1,406 | — | — | — |
| Receivables | US$ in thousands | 125,284 | 131,578 | 117,408 | 98,214 | 93,444 |
| Total current liabilities | US$ in thousands | 148,491 | 140,042 | 143,802 | 94,428 | 92,258 |
| Quick ratio | 1.28 | 1.42 | 1.53 | 1.94 | 1.72 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($64,447K
+ $—K
+ $125,284K)
÷ $148,491K
= 1.28
The quick ratio of Balchem Corp. has fluctuated over the past five years, ranging from 1.38 in 2023 to 2.08 in 2020. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
In 2023, the quick ratio decreased to 1.38, which may raise some concerns about the company's ability to pay off its short-term obligations. However, it is still above 1, suggesting that Balchem Corp. has an acceptable level of liquidity to meet its current liabilities.
In 2022 and 2021, the quick ratio was relatively higher at 1.54 and 1.61, respectively, indicating a strong ability to cover short-term obligations with liquid assets.
The highest quick ratio was recorded in 2020 at 2.08, which suggests a robust liquidity position, providing a significant cushion to meet short-term obligations without relying heavily on inventory or other less liquid assets.
Overall, Balchem Corp. has maintained a relatively sound liquidity position over the years, although there was a slight decrease in 2023. It is important for stakeholders to monitor this ratio to ensure the company's continued ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023