Cytek Biosciences Inc (CTKB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	98,716	167,299	296,601	364,618	165,231
Short-term investments	US$ in thousands	179,145	95,111	44,548	0	—
Total current liabilities	US$ in thousands	67,663	56,226	49,040	32,160	26,536
Cash ratio		4.11	4.67	6.96	11.34	6.23

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,716K + $179,145K) ÷ $67,663K
= 4.11

The cash ratio of Cytek Biosciences Inc has shown fluctuations over the past five years. As of December 31, 2020, the cash ratio was 6.23, indicating that the company had $6.23 in cash and cash equivalents for every dollar of current liabilities. This ratio increased significantly by December 31, 2021, reaching 11.34, which suggests a strong liquidity position and ability to cover short-term obligations with ease.

However, in the following years, the cash ratio began to decline. By December 31, 2022, the ratio was 6.96, indicating a decrease in the company's ability to cover its current liabilities with cash on hand. This trend continued, with the ratio dropping to 4.67 by December 31, 2023, and further falling to 4.11 by December 31, 2024.

Overall, the declining trend in the cash ratio raises concerns about Cytek Biosciences Inc's liquidity position and ability to meet its short-term obligations solely with its available cash reserves. Further analysis of the company's cash management practices and operating cash flows may be necessary to understand the reasons behind the decreasing cash ratio over the years.