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.