Repligen Corporation (RGEN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	751,323	523,458	603,814	717,292	528,392
Short-term investments	US$ in thousands	—	100,299	—	—	—
Total current liabilities	US$ in thousands	158,162	404,196	375,262	318,956	48,313
Cash ratio		4.75	1.54	1.61	2.25	10.94

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($751,323K + $—K) ÷ $158,162K
= 4.75

The cash ratio of Repligen Corp., a measure of its ability to cover short-term liabilities with its cash and cash equivalents, has varied over the past five years. In 2023, the cash ratio stands at 4.96, indicating a significant increase compared to the previous year. This suggests that the company has significantly improved its liquidity position and can cover its short-term obligations more comfortably with its available cash reserves.

In 2022, the cash ratio was 1.59, reflecting a lower liquidity position compared to 2021 and indicating the company faced challenges in meeting its short-term obligations solely from cash and cash equivalents. However, the ratio improved in 2021 to 1.68, showing a slightly better ability to cover short-term liabilities with available cash.

The cash ratio significantly decreased to 2.31 in 2020 compared to the exceptionally high ratio of 11.06 in 2019. The notable decrease in 2020 suggests that the company may have allocated more of its cash reserves to other uses or investments, resulting in a lower ability to cover short-term liabilities with its cash holdings during that period.

Overall, the increasing trend in the cash ratio from 2020 to 2023 indicates an improvement in Repligen Corp.'s liquidity position and its ability to meet short-term obligations with cash on hand. However, careful monitoring of this ratio is essential to ensure optimal cash management and liquidity in the future.