Bio-Rad Laboratories Inc (BIO)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.48 | 6.14 | 6.28 | 6.57 | 5.83 | 5.64 | 5.39 | 5.56 | 5.55 | 5.50 | 5.30 | 5.10 | 2.92 | 3.79 | 3.90 | 3.57 | 3.39 | 2.36 | 2.30 | 2.40 |
| Quick ratio | 3.56 | 3.26 | 3.33 | 3.54 | 3.09 | 3.16 | 2.97 | 3.15 | 3.16 | 3.25 | 3.22 | 3.21 | 1.29 | 2.07 | 1.99 | 1.68 | 1.58 | 1.18 | 1.12 | 1.20 |
| Cash ratio | 3.56 | 3.26 | 3.33 | 3.54 | 3.09 | 3.16 | 2.97 | 3.15 | 3.16 | 3.25 | 3.22 | 3.21 | 1.29 | 2.07 | 1.99 | 1.68 | 1.58 | 1.18 | 1.12 | 1.20 |
Bio-Rad Laboratories Inc has shown a consistently strong current ratio over the past quarters, indicating a healthy level of liquidity and the ability to meet short-term obligations. The current ratio has increased from 2.40 in March 2020 to 6.48 in December 2024, with a peak of 6.57 in March 2024, reflecting a significant improvement in the company's short-term financial health.
Similarly, the quick ratio, which measures the company's ability to cover immediate liabilities with its most liquid assets, has also exhibited an upward trend over the same period. The quick ratio increased from 1.20 in March 2020 to 3.56 in December 2024, peaking at 3.54 in March 2024. This indicates that Bio-Rad Laboratories Inc has a solid liquidity position and is well-equipped to meet short-term obligations without relying heavily on selling inventory.
Moreover, the cash ratio, which provides an even more stringent measure of liquidity by focusing solely on cash and cash equivalents, has followed a similar positive trajectory. Starting at 1.20 in March 2020, the cash ratio increased to 3.56 in December 2024, with a peak of 3.54 in March 2024. This suggests that Bio-Rad Laboratories Inc has maintained a healthy level of cash reserves relative to its current liabilities, further enhancing its ability to cover immediate financial needs.
Overall, the liquidity ratios of Bio-Rad Laboratories Inc have shown consistent improvement over the quarters, indicating a strong financial position and the ability to manage short-term obligations effectively. The company's increasing current, quick, and cash ratios reflect a sound liquidity management strategy and provide investors and stakeholders with confidence in the company's financial stability.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 233.81 | 249.58 | 248.85 | 235.39 | 228.87 | 224.26 | 222.63 | 219.90 | 213.14 | 203.46 | 194.53 | 176.49 | 162.94 | 167.96 | 174.89 | 187.24 | 205.02 | 217.97 | 219.33 | 190.60 |
The cash conversion cycle of Bio-Rad Laboratories Inc has shown fluctuations over the periods presented. From March 31, 2020, to December 31, 2020, the cycle decreased from 190.60 days to 205.02 days before decreasing further to 162.94 days by December 31, 2021. This improvement indicated the company's ability to manage its operating cycle more efficiently.
However, a reversal in trend was observed from March 31, 2022, to December 31, 2024, where the cash conversion cycle increased steadily, reaching 233.81 days by December 31, 2024. This could be a sign of potential challenges in managing working capital, impacting the company's ability to convert its resources into cash effectively.
It is important for Bio-Rad Laboratories Inc to monitor and address the factors contributing to the prolongation of the cash conversion cycle to ensure optimal cash flow management and operational efficiency in the future.