Fulgent Genetics Inc (FLGT)

Cash ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 97,473 84,076 58,348 66,172 79,506 168,770 138,780 353 164,894 214,877 100,461 151,461 87,426 53,031 2,431 9,302 11,965 20,522 9,165 5,288
Short-term investments US$ in thousands 326,681 383,726 400,083 805,146 773,377 749,236 376,622 352,716 770,652 255,102 676,578 258,317 211,941 21,904 18,530 18,028 16,304 11,596 17,820 24,139
Total current liabilities US$ in thousands 73,018 61,421 64,819 81,939 88,107 102,522 127,527 141,714 105,310 147,158 121,524 196,530 130,115 57,736 6,509 5,810 3,723 4,253 2,909 3,203
Cash ratio 5.81 7.62 7.07 10.63 9.68 8.95 4.04 2.49 8.88 3.19 6.39 2.09 2.30 1.30 3.22 4.70 7.59 7.55 9.28 9.19

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 of Fulgent Genetics Inc has shown a generally increasing trend over the past eight quarters, reaching its peak in Q3 2023 at 7.98 and slightly declining in Q4 2023 to 6.25. This ratio indicates that the company had $6.25 of cash and cash equivalents available to cover each $1 of current liabilities in Q4 2023.

A cash ratio above 1.0 is generally seen as positive as it suggests that the company has enough liquid assets to cover its short-term obligations. The consistent improvement in the cash ratio over the quarters indicates that Fulgent Genetics Inc has become more efficient in managing its cash and liquidity position.

However, it is essential to note that while a high cash ratio signifies liquidity strength, excessively high cash holdings may also signal underutilization of resources. Thus, Fulgent Genetics Inc should continue monitoring its cash position to ensure it maintains an optimal balance between liquidity and investment for future growth opportunities.