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.
Peer comparison
Dec 31, 2023