Fulgent Genetics Inc (FLGT)
Cash ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 55,144 | 97,473 | 79,506 | 164,894 | 87,426 |
Short-term investments | US$ in thousands | 202,962 | 326,681 | 773,377 | 770,652 | 344,443 |
Total current liabilities | US$ in thousands | 72,899 | 73,018 | 116,178 | 112,840 | 131,074 |
Cash ratio | 3.54 | 5.81 | 7.34 | 8.29 | 3.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,144K
+ $202,962K)
÷ $72,899K
= 3.54
The cash ratio for Fulgent Genetics Inc has shown a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio increased significantly from 3.29 in 2020 to 8.29 in 2021, indicating a strong ability to cover short-term liabilities with cash and cash equivalents. However, in the following years, the cash ratio exhibited some degree of volatility, with values of 7.34 in 2022, 5.81 in 2023, and finally decreasing to 3.54 in 2024.
Overall, a higher cash ratio signifies a company's capacity to meet its immediate obligations without relying on external sources. The initial spike in the cash ratio in 2021 suggests a robust liquidity position, but the subsequent decline in the ratio in the later years may signal potential changes in the company's cash management or investment strategies. It is important for Fulgent Genetics Inc to maintain a balance between liquidity and investment opportunities to ensure financial stability and flexibility.
Peer comparison
Dec 31, 2024