BioLife Solutions Inc (BLFS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	35,407	19,442	69,860	90,403	6,448
Short-term investments	US$ in thousands	16,288	44,658	40	5,872	—
Total current liabilities	US$ in thousands	42,178	44,582	42,700	15,573	7,669
Cash ratio		1.23	1.44	1.64	6.18	0.84

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($35,407K + $16,288K) ÷ $42,178K
= 1.23

The cash ratio of BioLife Solutions Inc has fluctuated over the past five years. In 2023, the cash ratio stood at 1.23, declining from 1.44 in 2022 and 1.64 in 2021. This decrease indicates a potential decrease in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents.

However, when compared to the cash ratio of 6.18 in 2020 and 0.84 in 2019, the company's liquidity position has shown improvement from 2019 but a significant decline from 2020. The cash ratio is an important indicator of a company's short-term liquidity and its ability to meet immediate obligations without relying on external sources of funding. BioLife Solutions Inc should continue monitoring and managing its cash position to ensure it remains adequately liquid to meet its financial obligations.