Bio-Rad Laboratories Inc (BIO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 488,100 | 403,815 | 434,215 | 470,783 | 662,205 |
| Short-term investments | US$ in thousands | 1,176,400 | 1,203,330 | 1,362,020 | 404,695 | 334,473 |
| Total current liabilities | US$ in thousands | 467,800 | 522,799 | 568,708 | 680,938 | 631,536 |
| Cash ratio | 3.56 | 3.07 | 3.16 | 1.29 | 1.58 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($488,100K
+ $1,176,400K)
÷ $467,800K
= 3.56
The cash ratio of Bio-Rad Laboratories Inc, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has shown fluctuations over the years.
At the end of December 31, 2020, the cash ratio was 1.58, indicating that the company had $1.58 in cash and cash equivalents for every dollar of its current liabilities. This suggests a relatively solid liquidity position, but the ratio decreased to 1.29 by December 31, 2021, possibly signaling a decrease in available cash or an increase in short-term liabilities.
However, the cash ratio significantly improved in the following years, reaching 3.16 by December 31, 2022, 3.07 by December 31, 2023, and 3.56 by December 31, 2024. These higher ratios demonstrate the company's enhanced ability to meet its short-term obligations solely with cash and cash equivalents, reflecting a stronger liquidity position and potentially improved financial stability.
Overall, the trend in Bio-Rad Laboratories Inc's cash ratio indicates an initial decline followed by a substantial improvement, showcasing the company's efforts to manage its liquidity effectively and enhance its financial health.
Peer comparison
Dec 31, 2024