BioLife Solutions Inc (BLFS)

BioLife Solutions Inc's liquidity ratios have shown some fluctuations over the past five years.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, was at a healthy level of 7.37 in December 2020 but decreased to 2.95 by December 2021. Although it improved slightly in the following years, reaching 3.11 in 2022 and 2.86 in 2023, it then rose significantly to 4.54 by the end of 2024. This indicates that the company's liquidity position has been volatile but generally improving over the years, with a notable improvement in 2024.

- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also followed a similar trend. It was at a high level of 6.70 in December 2020, but dropped to 2.18 by December 2021. The quick ratio remained relatively stable in the subsequent years, hovering around 2.20 in 2022 and 2023, before increasing to 3.48 by the end of 2024. This trend suggests that the company has been able to improve its ability to meet its short-term obligations without relying on inventory.

- The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, was at 6.18 in December 2020, reflecting a strong cash position. However, this ratio decreased significantly to 1.64 by December 2021 and continued to decline to 1.44 by December 2022. It saw a further decrease to 1.06 in 2023 before a notable improvement to 3.19 in 2024. This shows that the company had a very strong cash position in 2020, but faced challenges in managing its cash effectively in the following years, before making a substantial recovery in 2024.

Overall, BioLife Solutions Inc's liquidity ratios indicate that the company has experienced some fluctuations in liquidity over the past five years, but has generally managed to improve its liquidity position, especially in terms of cash holdings, by the end of 2024.

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Additional liquidity measure

The cash conversion cycle of BioLife Solutions Inc has shown fluctuations over the past five years. In December 2020, the cash conversion cycle was 177.85 days, representing the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. By December 2021, the cycle decreased to 158.20 days, indicating a more efficient management of working capital.

However, in December 2022, the cash conversion cycle decreased significantly to 114.60 days, reaching its lowest level over the period analyzed. This demonstrates an improvement in the company's ability to convert its resources into cash, potentially through better inventory management or faster collection of receivables.

In December 2023, the cash conversion cycle slightly increased to 132.92 days, indicating a slight slowdown in the conversion of resources into cash flow. This may be attributed to changes in the company's operations or market conditions affecting the efficiency of its working capital cycle.

By December 2024, the cash conversion cycle significantly increased to 209.85 days, representing a notable extension in the time required for BioLife Solutions Inc to convert its investments into cash flow. This increase may signal potential challenges in managing working capital effectively or difficulties in converting sales into cash in a timely manner.

Overall, monitoring and analyzing the cash conversion cycle of BioLife Solutions Inc can provide insights into its working capital management efficiency and operational performance, highlighting areas for potential improvement or concern in the company's financial health.