Repligen Corporation (RGEN)

The liquidity ratios of Repligen Corporation indicate the company's ability to meet its short-term obligations with its current assets.

1. Current Ratio: The current ratio shows a slight decline from 2.83 in 2020 to 2.47 in 2022, before significantly improving to 7.02 in 2023 and then slightly decreasing to 6.18 in 2024. This ratio suggests that Repligen has more than enough current assets to cover its current liabilities, with a notable increase in 2023 indicating a stronger liquidity position.

2. Quick Ratio: The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, shows a similar trend to the current ratio. It decreased from 2.25 in 2020 to 1.54 in 2022 but then increased significantly to 4.75 in 2023 before reaching 6.18 in 2024. This demonstrates Repligen's ability to meet short-term obligations without relying on the sale of inventory.

3. Cash Ratio: The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, follows the same pattern as the quick ratio. It decreased from 2.25 in 2020 to 1.54 in 2022 but then increased significantly to 4.75 in 2023 before reaching 6.18 in 2024. This indicates a strong cash position that can cover a substantial portion of current liabilities.

Overall, Repligen Corporation's liquidity ratios show a mixed performance over the years, with improvements in 2023 and 2024 indicating a healthier liquidity position. This suggests that the company has the ability to meet its short-term financial obligations and indicates a potential for financial stability.

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Additional liquidity measure

The cash conversion cycle of Repligen Corporation has shown fluctuations over the years, as per the provided data. As of December 31, 2020, the company's cash conversion cycle was 221.43 days, indicating the number of days it takes to convert its investments in inventory and other resources into cash flows from sales.

By December 31, 2021, the cash conversion cycle had increased to 241.12 days, suggesting a longer period for the company to recover its investments in the production and sale of goods and services. This trend continued in 2022, with the cycle extending to 251.49 days.

However, there was a significant improvement in the cash conversion cycle by December 31, 2023, where it decreased to 208.30 days. This reduction indicates a more efficient management of working capital and a quicker conversion of resources into cash.

The most recent data point, as of December 31, 2024, shows a further improvement in the cash conversion cycle, dropping to 205.25 days. This signifies that Repligen Corporation has become more efficient in managing its inventories, collecting receivables, and paying its liabilities, leading to a shorter cash conversion cycle.

Overall, the trend in the cash conversion cycle of Repligen Corporation reflects fluctuations but also demonstrates efforts towards optimizing working capital management and enhancing operational efficiency.