Cytek Biosciences Inc (CTKB)

Cytek Biosciences Inc's liquidity ratios show a positive trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has improved from 7.86 in 2020 to 13.43 in 2021, indicating a strong liquidity position. However, the ratio decreased to 6.97 in 2023 and then further to 5.86 in 2024, suggesting a potential decrease in short-term liquidity.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Cytek Biosciences Inc's quick ratio has also experienced fluctuations, increasing from 6.23 in 2020 to 11.34 in 2021 before declining to 4.11 in 2024. This indicates a decreasing ability to meet short-term obligations using only the most liquid assets.

The cash ratio, which focuses solely on the company's ability to cover short-term liabilities with cash and cash equivalents, shows a similar trend to the quick ratio. It increased from 6.23 in 2020 to 11.34 in 2021 but then decreased to 4.11 in 2024, signaling potential challenges in meeting immediate financial obligations with cash resources alone.

Overall, Cytek Biosciences Inc's liquidity ratios depict a mix of positive and concerning trends, highlighting the importance of closely monitoring the company's ability to meet short-term financial obligations with readily available assets.

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Additional liquidity measure

The cash conversion cycle of Cytek Biosciences Inc has shown fluctuations over the years. In 2020, the cash conversion cycle was 204.27 days, indicating the time it takes for the company to convert its investments in inventory and other resources into cash. By the end of 2021, the cash conversion cycle increased to 240.59 days, suggesting a lengthening period in managing working capital.

By the end of 2022, the cash conversion cycle further extended to 278.71 days, reaching its peak in recent years. This indicates a potential strain on the company's liquidity and efficiency in managing its cash flow. However, there was a notable improvement by the end of 2024, with the cash conversion cycle declining to 179.31 days. This reduction suggests the company may have implemented better working capital management practices to expedite the conversion of assets into cash.

Overall, monitoring the cash conversion cycle is crucial for assessing Cytek Biosciences Inc's operational efficiency and financial management. A decreasing trend in the cash conversion cycle would typically indicate improved liquidity and effectiveness in converting investments into cash, while an increasing trend may raise concerns about working capital management and operational performance.