Bio-Rad Laboratories Inc (BIO)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 488,100 403,815 434,215 470,783 662,205
Short-term investments US$ in thousands 1,176,400 1,203,330 1,362,020 404,695 334,473
Receivables US$ in thousands
Total current liabilities US$ in thousands 467,800 522,799 568,708 680,938 631,536
Quick ratio 3.56 3.07 3.16 1.29 1.58

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($488,100K + $1,176,400K + $—K) ÷ $467,800K
= 3.56

The quick ratio of Bio-Rad Laboratories Inc has shown varying trends over the past five years. In December 2020, the quick ratio was 1.58, indicating the company had $1.58 in highly liquid assets available to cover each $1 of current liabilities. By December 2021, the quick ratio decreased to 1.29, suggesting a slight decrease in the company's ability to meet short-term obligations using its quick assets.

However, there was a significant improvement in the quick ratio in the subsequent years. In December 2022, the quick ratio increased substantially to 3.16, indicating a strengthened liquidity position with more than enough quick assets to cover current liabilities. This improvement was sustained in December 2023 and 2024, with quick ratios of 3.07 and 3.56, respectively.

Overall, the increasing trend in the quick ratio from 2021 to 2024 suggests that Bio-Rad Laboratories Inc has been able to enhance its liquidity position and ability to meet short-term financial obligations effectively. This steady improvement indicates a positive liquidity management strategy in place, providing a good cushion against potential liquidity risks in the future.