BioLife Solutions Inc (BLFS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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	—
Receivables	US$ in thousands	18,657	33,936	23,217	8,006	5,345
Total current liabilities	US$ in thousands	42,178	44,582	42,700	15,573	7,669
Quick ratio		1.67	2.20	2.18	6.70	1.54

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($35,407K + $16,288K + $18,657K) ÷ $42,178K
= 1.67

The quick ratio measures the ability of BioLife Solutions Inc to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates stronger liquidity and a better ability to cover short-term liabilities.

Analyzing the trend over the past five years, we observe fluctuations in BioLife Solutions Inc's quick ratio. In 2023, the quick ratio decreased to 1.67 from 2.20 in 2022, which may indicate a slight decline in short-term liquidity. However, the ratio remains above 1, signifying that the company still has sufficient liquid assets to cover its short-term liabilities.

Comparing the 2023 quick ratio to historical data, it appears lower than the ratio achieved in 2022 and 2021, suggesting a potential decrease in liquidity. The significant increase in the quick ratio in 2020 to 6.70 indicates a strong ability to cover short-term obligations with liquid assets during that year. The quick ratio in 2019 was moderate at 1.54, indicating comparatively lower liquidity than in other years.

Overall, while the current quick ratio of 1.67 in 2023 is relatively lower compared to previous years, it still indicates that BioLife Solutions Inc has a sufficient level of liquid assets to meet its short-term financial obligations. However, investors and stakeholders may want to monitor this ratio in subsequent periods to assess any emerging liquidity concerns.