Cytek Biosciences Inc (CTKB)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	396,446	392,060	454,020	432,052	208,622
Total current liabilities	US$ in thousands	67,663	56,226	49,040	32,160	26,536
Current ratio		5.86	6.97	9.26	13.43	7.86

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $396,446K ÷ $67,663K
= 5.86

The current ratio, a measure of a company's ability to cover its short-term liabilities with its short-term assets, has been fluctuating for Cytek Biosciences Inc over the past few years.

As of December 31, 2020, the current ratio was a healthy 7.86, indicating that the company had $7.86 in current assets for every $1 in current liabilities. This suggests a strong ability to meet short-term obligations.

By the end of 2021, the current ratio improved significantly to 13.43, showcasing an even stronger liquidity position compared to the previous year. This suggests that Cytek Biosciences had increased its current assets relative to its current liabilities.

In 2022, the current ratio decreased to 9.26, indicating a slight reduction in liquidity compared to the previous year but still at a relatively healthy level.

However, by the end of 2023, the current ratio dropped further to 6.97, which may raise some concerns as it shows a decline in the company's ability to cover short-term liabilities with its current assets.

The trend continued in 2024, with the current ratio falling to 5.86, signaling a further deterioration in liquidity compared to the previous year. This may indicate potential challenges in meeting short-term obligations with current assets alone.

In conclusion, while Cytek Biosciences Inc maintained a strong liquidity position in 2021, the subsequent decrease in the current ratio in the following years raises questions about the company's ability to cover short-term liabilities with its current assets. Monitoring this trend closely is advisable to assess any potential liquidity risks.