Bio-Rad Laboratories Inc (BIO)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.41 | 4.72 | 4.68 | 4.57 |
| Quick ratio | 4.03 | 3.99 | 3.82 | 4.01 | 4.04 | 4.01 | 3.95 | 3.92 | 1.90 | 2.70 | 2.66 | 2.34 | 2.24 | 1.58 | 1.50 | 1.63 | 1.66 | 3.08 | 3.05 | 2.81 |
| Cash ratio | 3.07 | 3.15 | 2.96 | 3.14 | 3.15 | 3.24 | 3.21 | 3.20 | 1.28 | 2.06 | 1.98 | 1.67 | 1.57 | 1.17 | 1.11 | 1.19 | 1.23 | 2.26 | 2.20 | 1.93 |
Bio-Rad Laboratories Inc. has demonstrated consistently strong liquidity positions based on the current ratio, quick ratio, and cash ratio over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been above 5 in all quarters, indicating a healthy liquidity position. This suggests that Bio-Rad has more than enough current assets to cover its current liabilities, providing a comfortable buffer for any potential financial challenges.
Similarly, the quick ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, has also been robust, consistently exceeding 4. This indicates that the company has a strong ability to meet its short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also been consistently strong, remaining above 3 in all quarters. This indicates that Bio-Rad Laboratories Inc. holds sufficient liquid assets to cover its immediate liabilities, highlighting a prudent cash management strategy.
Overall, the liquidity ratios suggest that Bio-Rad Laboratories Inc. is well-positioned to meet its short-term obligations and has ample liquidity to support its operations and potential investment opportunities.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 183.20 | 179.44 | 175.20 | 171.62 | 171.03 | 152.16 | 144.53 | 135.31 | 124.62 | 129.60 | 133.23 | 141.61 | 156.48 | 159.49 | 180.09 | 167.22 | 148.21 | 184.55 | 188.50 | 189.23 |
The cash conversion cycle of Bio-Rad Laboratories Inc. has shown a generally increasing trend over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 188.16 days, which steadily increased to 253.35 days by Q4 2023. This indicates that Bio-Rad Laboratories Inc. is taking longer to convert its investments in inventory and other resources into cash.
A longer cash conversion cycle may suggest that the company is facing challenges in efficiently managing its working capital and converting its assets into cash. This could potentially lead to liquidity issues or an inefficient use of resources within the company.
It is important for Bio-Rad Laboratories Inc. to closely monitor and improve its cash conversion cycle to ensure optimal efficiency in managing its working capital and liquidity. This may involve streamlining inventory management, improving accounts receivable collection processes, and negotiating favorable payment terms with suppliers to shorten the cash conversion cycle and enhance overall financial performance.