Repligen Corporation (RGEN)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 7.02 | 2.47 | 2.48 | 2.83 | 13.28 |
| Quick ratio | 5.54 | 1.83 | 1.92 | 2.47 | 11.84 |
| Cash ratio | 4.75 | 1.54 | 1.61 | 2.25 | 10.94 |
The liquidity ratios of Repligen Corp. have shown fluctuations over the past five years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been volatile but generally above 2. This indicates that the company has a strong ability to meet its short-term liabilities with its current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited variability but has generally been above 1. This suggests that Repligen Corp. can cover its immediate liabilities with its most liquid assets, excluding inventory.
The cash ratio, the most conservative measure of liquidity that focuses solely on cash and cash equivalents to cover current liabilities, has followed a similar pattern to the other ratios, remaining above 1 across the years analyzed. This indicates that the company has a sufficient amount of cash on hand to meet its short-term obligations.
Overall, the liquidity ratios of Repligen Corp. reflect a stable and healthy liquidity position, with the company maintaining a strong ability to cover its short-term obligations using current assets and liquid resources.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 176.82 | 178.54 | 173.06 | 167.62 | 129.69 |
The cash conversion cycle of Repligen Corp. has shown some fluctuations over the past five years. It increased from 192.01 days in 2019 to 275.34 days in 2022, indicating a prolonged period required to convert investments in inventory and accounts receivable into cash. By the end of 2023, the cash conversion cycle decreased to 259.43 days, showing a slight improvement compared to the previous year.
The longer the cash conversion cycle, the longer the company's working capital is tied up in operations before being converted back into cash. It is essential for Repligen Corp. to manage its inventory and accounts receivable efficiently to reduce the cash conversion cycle and free up cash for other investment opportunities or operational needs. Keeping a close eye on this metric can help the company optimize its cash flow and overall financial performance.