Bruker Corporation (BRKR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	488,300	645,500	1,068,200	681,800	678,300
Short-term investments	US$ in thousands	—	0	100,000	50,000	6,600
Total current liabilities	US$ in thousands	1,202,100	914,300	938,500	791,900	645,600
Cash ratio		0.41	0.71	1.24	0.92	1.06

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($488,300K + $—K) ÷ $1,202,100K
= 0.41

The cash ratio indicates a company's ability to cover its current liabilities with its readily available cash and cash equivalents. A higher cash ratio signifies a greater ability to meet short-term obligations using cash on hand.

Analyzing Bruker Corp's cash ratio over the past five years, we can observe a declining trend. The cash ratio stood at 0.59 in 2023, indicating that the company had $0.59 in cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year's ratio of 0.92.

The significant drop in the cash ratio from 2022 to 2023 may raise concerns about Bruker Corp's liquidity position and its ability to meet short-term obligations solely with cash reserves. It is essential to closely monitor the factors contributing to this decline in the cash ratio to assess the company's liquidity and financial health accurately.