BioLife Solutions Inc (BLFS)

Based on the data provided, let's analyze the liquidity ratios of BioLife Solutions Inc over the past five years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
- BioLife Solutions Inc has shown a slight decline in its current ratio from 3.14 in 2019 to 2.86 in 2023.
- Despite the decrease, the company's current ratio remains above 1, indicating that it has more than enough current assets to cover its short-term liabilities.
- A current ratio above 2 is generally considered healthy, indicating that BioLife Solutions Inc has ample liquidity to meet its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventories from current assets.
- BioLife Solutions Inc's quick ratio has also decreased over the years, from a high of 6.70 in 2020 to 1.67 in 2023.
- Despite the decline, BioLife Solutions Inc still maintains a quick ratio above 1, which implies that the company can cover its short-term liabilities with its most liquid assets.
- A quick ratio above 1 is generally considered satisfactory, indicating BioLife Solutions Inc's ability to meet its immediate financial obligations.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity metric, measuring the company's ability to cover its short-term liabilities with its cash and cash equivalents only.
- BioLife Solutions Inc's cash ratio has also shown a declining trend, from 0.84 in 2019 to 1.23 in 2023.
- The company's cash ratio remains above 1 in all years, suggesting that BioLife Solutions Inc holds sufficient cash to pay off its short-term obligations if needed.
- A cash ratio above 1 signifies a strong ability to settle short-term debts using cash resources alone.

In conclusion, BioLife Solutions Inc has exhibited strong liquidity positions over the past five years, as indicated by its current, quick, and cash ratios consistently above 1. Although there has been a slight decline in these ratios over time, the company still possesses adequate liquidity to cover its short-term obligations. It is important for investors and stakeholders to monitor these ratios to ensure the company's liquidity levels remain stable and sufficient to meet its financial commitments.

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Additional liquidity measure

The cash conversion cycle of BioLife Solutions Inc has fluctuated over the past five years. It increased from 188.89 days in 2019 to 177.85 days in 2020, and then further decreased to 158.20 days in 2021. However, there was an increase again in 2022 to 114.60 days before rising to 172.69 days in 2023.

A longer cash conversion cycle indicates that the company takes more time to convert its investments in inventory and other resources into cash inflows from sales. This could potentially lead to liquidity challenges and inefficiencies in managing working capital.

It is crucial for BioLife Solutions Inc to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and improve its overall financial performance. By analyzing the trend over the years, the company can identify areas for improvement and implement strategies to streamline its cash conversion cycle.