Bio-Rad Laboratories Inc (BIO)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.58 | 5.83 | 5.55 | 2.92 | 3.39 |
| Quick ratio | 3.56 | 3.07 | 3.16 | 1.29 | 1.58 |
| Cash ratio | 3.56 | 3.07 | 3.16 | 1.29 | 1.58 |
Bio-Rad Laboratories Inc's liquidity ratios indicate its ability to meet short-term obligations and cover immediate financial needs.
- The current ratio has shown a fluctuating trend over the years, from 3.39 in 2020 to 2.58 in 2024. Despite a slight dip in 2024, the current ratio has generally remained above 2, suggesting that the company has more than enough current assets to cover its current liabilities.
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has displayed an improving trend from 1.29 in 2021 to 3.56 in 2024. This indicates that Bio-Rad Laboratories Inc has a strong ability to cover its short-term obligations without relying on selling inventory.
- The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also followed a similar positive trajectory from 1.29 in 2021 to 3.56 in 2024. This suggests that the company's cash position has strengthened over the years, providing a solid cushion for meeting immediate payment needs.
Overall, Bio-Rad Laboratories Inc's liquidity ratios demonstrate a healthy liquidity position, with adequate levels of current assets relative to current liabilities, a strong ability to pay off short-term obligations without relying on inventory, and a solid cash position to cover immediate financial demands.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 233.58 | 228.95 | 212.61 | 162.94 | 205.02 |
The cash conversion cycle of Bio-Rad Laboratories Inc has shown fluctuations over the past five years. In 2020, the company had a cash conversion cycle of 205.02 days, which decreased to 162.94 days in 2021, indicating an improvement in efficiency in converting its investments in inventory and receivables into cash.
However, in 2022, the cash conversion cycle increased to 212.61 days, and further rose to 228.95 days in 2023 and 233.58 days in 2024. These increases suggest that the company may be taking longer to convert its resources into cash during these periods.
Overall, the data reveals some variability in Bio-Rad Laboratories Inc's cash conversion cycle, which can impact its liquidity and operational efficiency. Monitoring and managing the cash conversion cycle effectively is crucial for the company to optimize its working capital and cash flows.