Fulgent Genetics Inc (FLGT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 353,571 507,845 905,632 1,074,460 615,726
Total current liabilities US$ in thousands 72,899 73,018 116,178 112,840 131,074
Current ratio 4.85 6.96 7.80 9.52 4.70

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $353,571K ÷ $72,899K
= 4.85

The current ratio of Fulgent Genetics Inc has shown fluctuations over the past five years. It increased from 4.70 as of December 31, 2020, to 9.52 as of December 31, 2021, indicating a significant improvement in the company's short-term liquidity position. However, in the following years, the current ratio slightly decreased to 7.80 as of December 31, 2022, 6.96 as of December 31, 2023, and further dropped to 4.85 as of December 31, 2024.

Despite the recent decline, Fulgent Genetics Inc has generally maintained a healthy current ratio above 1 in all years, indicating that the company has sufficient current assets to cover its current liabilities. A current ratio above 1 is typically considered favorable as it suggests that the company can meet its short-term obligations without facing liquidity issues. Overall, the company's current ratio trend reflects fluctuations in its short-term liquidity position, and close monitoring of this ratio is recommended for assessing the company's ability to meet its short-term financial obligations.