Bio-Rad Laboratories Inc (BIO)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	403,815	434,215	470,783	662,205	660,672
Short-term investments	US$ in thousands	1,203,330	1,356,460	399,135	328,913	453,973
Total current liabilities	US$ in thousands	522,799	568,708	680,938	631,536	905,495
Cash ratio		3.07	3.15	1.28	1.57	1.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($403,815K + $1,203,330K) ÷ $522,799K
= 3.07

The cash ratio of Bio-Rad Laboratories Inc. has shown a fluctuating trend over the past five years. In 2023, the cash ratio stands at 3.39, slightly lower than the previous year's ratio of 3.41. This indicates that the company has $3.39 of cash available to cover each dollar of current liabilities.

Comparing the current ratio to earlier years, we observe a significant improvement from 1.36 in 2019 to 1.73 in 2020. However, the ratio decreased in 2021 but rebounded in 2022 and remained relatively stable in 2023.

With a cash ratio consistently above 1 in the last five years, Bio-Rad Laboratories Inc. appears to have a strong ability to cover its short-term obligations with cash on hand. This may signify sound liquidity management and a lower risk of facing difficulties in meeting its short-term financial obligations.