Bio-Rad Laboratories Inc (BIO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 500,917 | 506,245 | 425,737 | 420,824 | 392,672 |
| Total current liabilities | US$ in thousands | 522,799 | 568,708 | 680,938 | 631,536 | 905,495 |
| Quick ratio | 4.03 | 4.04 | 1.90 | 2.24 | 1.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($403,815K
+ $1,203,330K
+ $500,917K)
÷ $522,799K
= 4.03
The quick ratio of Bio-Rad Laboratories Inc. has shown a generally increasing trend from 2019 to 2023, indicating an improvement in the company's short-term liquidity and ability to meet its immediate liabilities.
In 2019, the quick ratio was 1.79, indicating that for every $1 of current liabilities, Bio-Rad Laboratories had $1.79 in liquid assets available to cover those obligations quickly. This ratio increased to 2.39 in 2020, further improved to 2.07 in 2021, and continued to elevate to 4.28 in 2022, and 4.33 in 2023.
A quick ratio above 1.0 is generally considered healthy as it suggests that the company has more liquid assets than current liabilities. Therefore, the upward trend in Bio-Rad Laboratories Inc.'s quick ratio over the years indicates an enhanced ability to settle short-term debts and financial obligations using its liquid assets.
The significant increase in the quick ratio from 2019 to 2023 signifies that the company has enhanced its liquidity position and has become better equipped to handle its short-term financial obligations.
Peer comparison
Dec 31, 2023