Bio-Techne Corp (TECH)

The liquidity ratios of Bio-Techne Corp over the specified period indicate a generally strong short-term financial position, with some variations observed across the years.

The current ratio demonstrates a steady upward trend from 3.35 in June 2021 to a peak of 4.84 in June 2023, signifying an improved ability to meet short-term obligations with current assets. Following this peak, the ratio declines slightly to 3.87 in June 2024 and further to 3.46 in June 2025, but remains well above the generally accepted threshold of 1. indicating adequate liquidity.

The quick ratio, which excludes inventory from current assets to assess the company’s more liquid assets, mirrors the trend of the current ratio. It starts at 2.48 in June 2021, marginally increasing to 2.51 in June 2022, then rising more notably to 3.29 in June 2023. Subsequently, it declines to 2.47 in June 2024 and further to 2.10 in June 2025. Despite this decrease, the quick ratio remains comfortably above 1, reflecting a solid position of highly liquid assets relative to current liabilities.

The cash ratio, indicating the most conservative measure of liquidity, shows minor fluctuations over the period. It begins at 1.52 in June 2021, dips slightly to 1.40 in June 2022, and peaks at 1.59 in June 2023. Thereafter, the ratio decreases to 0.96 in June 2024 and to 0.92 in June 2025. Although the cash ratio in the most recent years approaches closer to 1, it still suggests that Bio-Techne Corp maintains a healthy level of cash and cash equivalents to cover its current liabilities, albeit with less cash cushion than in earlier periods.

Overall, the data indicates that Bio-Techne Corp has maintained robust liquidity over the analyzed period. The ratios reflect a strong capacity to meet short-term obligations, with the most notable peak occurring in 2023. The subsequent slight declines suggest a normalization or slight tightening of liquidity but do not signal any immediate concern regarding financial stability. The company's liquidity position remains favorable across all three measures, supporting its operational resilience and capacity to meet short-term financial commitments.

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Additional liquidity measure

The cash conversion cycle (CCC) of Bio-Techne Corp has demonstrated a trend of increasing over the period from June 30, 2021, to June 30, 2025. Specifically, the CCC was 163.94 days as of June 30, 2021, and rose to 176.37 days by June 30, 2022. The cycle continued to expand, reaching 215.36 days on June 30, 2023. Subsequently, slight reductions were observed, with the CCC decreasing to 208.92 days by June 30, 2024, and further to approximately 201.44 days as of June 30, 2025.

This progression indicates that the duration of the company's working capital cycle, from the collection of receivables and the conversion of inventory into sales through to the payment of suppliers, has grown over the analyzed period. An increasing CCC often reflects longer periods of inventory holding, extended receivable collection times, or delayed payment cycles to suppliers, potentially impacting working capital efficiency.

The peak observed in 2023 suggests a period where operational or market factors may have contributed to prolonged cash conversion processes. The subsequent decrease in 2024 and 2025 indicates some improvement or adjustment in working capital management. Overall, despite some recent reductions, the persistence of a relatively high and increasing CCC suggests a need for ongoing focus on optimizing inventory turnover, receivables collection, and payables management to enhance cash flow efficiency.