Cytek Biosciences Inc (CTKB)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash and cash equivalents	US$ in thousands	167,299	296,601	364,618
Short-term investments	US$ in thousands	95,111	44,548	—
Total current liabilities	US$ in thousands	56,226	49,040	33,181
Cash ratio		4.67	6.96	10.99

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($167,299K + $95,111K) ÷ $56,226K
= 4.67

The cash ratio measures a company's ability to pay off its current liabilities with its most liquid assets, which in this case is cash and cash equivalents.

For Cytek Biosciences Inc, the cash ratio has shown a declining trend over the past three years. In 2021, the cash ratio was 10.99, indicating that the company had $10.99 in cash and cash equivalents for every $1 of current liabilities. This dropped to 6.96 in 2022 and further decreased to 4.67 in 2023.

A higher cash ratio is generally considered better as it implies a stronger ability to cover short-term obligations. The decreasing trend in Cytek Biosciences Inc's cash ratio could suggest a potential liquidity concern or a shift in the company's cash management strategy.

It is essential for investors and stakeholders to monitor the cash ratio over time to assess the company's short-term liquidity position and financial health. Further analysis of the company's cash flow and working capital management may provide additional insights into its financial strength and ability to meet its obligations.