Bio-Techne Corp (TECH)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	162,186	151,791	180,571	172,567	199,091
Short-term investments	US$ in thousands	0	1,072	23,739	74,462	32,463
Total current liabilities	US$ in thousands	175,849	159,379	128,509	176,018	152,284
Cash ratio		0.92	0.96	1.59	1.40	1.52

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($162,186K + $0K) ÷ $175,849K
= 0.92

The cash ratio of Bio-Techne Corp over the analyzed period demonstrates variations that reflect changes in the company's short-term liquidity position. As of June 30, 2021, the cash ratio stood at 1.52, indicating that the company's cash and cash equivalents comfortably exceeded its current liabilities, with a substantial buffer for immediate obligations. By June 30, 2022, the ratio declined marginally to 1.40, suggesting a slight reduction in the company's ability to cover current liabilities solely with its cash holdings, yet remaining above the critical threshold of 1.0.

By June 30, 2023, the cash ratio experienced a modest increase to 1.59, indicating an improved liquidity position and enhanced capacity to meet short-term liabilities solely with cash and cash equivalents. However, a notable decrease is observed in the subsequent years, with the ratio dropping to 0.96 on June 30, 2024, and further declining to 0.92 on June 30, 2025. These reductions imply a tightening of liquidity, with cash and cash equivalents falling slightly short of covering all current liabilities, which could signal a decreased buffer for immediate obligations.

Overall, the trend indicates that Bio-Techne Corp's liquidity as measured by the cash ratio was relatively strong and stable from 2021 through 2023, but experienced a decline in the following years, approaching but not significantly below unity. This pattern suggests a potential need to monitor the company's liquidity management closely, particularly in the context of its ability to meet short-term liabilities solely with liquid assets in the most recent fiscal years.