Fulgent Genetics Inc (FLGT)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 97,473 | 79,506 | 164,894 | 87,426 | 11,965 |
Short-term investments | US$ in thousands | 326,681 | 773,377 | 770,652 | 211,941 | 16,304 |
Total current liabilities | US$ in thousands | 73,018 | 88,107 | 105,310 | 130,115 | 3,723 |
Cash ratio | 5.81 | 9.68 | 8.88 | 2.30 | 7.59 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($97,473K
+ $326,681K)
÷ $73,018K
= 5.81
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funds.
Fulgent Genetics Inc's cash ratio has fluctuated over the past five years, ranging from a low of 2.34 in 2020 to a high of 7.99 in 2019. The company's cash ratio improved significantly in 2023 compared to the previous years, reaching 6.25, which indicates a strong liquidity position.
The trend of increasing cash ratios from 2020 to 2023 suggests that Fulgent Genetics Inc has been effectively managing its liquidity and increasing its cash reserves. This could be attributed to better cash management practices, improved operating efficiency, or increased profitability.
Overall, the company's cash ratio of 6.25 in 2023 reflects a healthy liquidity position, indicating that Fulgent Genetics Inc is well-positioned to meet its short-term obligations using its available cash and cash equivalents.
Peer comparison
Dec 31, 2023