Bio-Techne Corp (TECH)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	151,791	180,571	172,567	199,091	146,625
Short-term investments	US$ in thousands	1,072	23,739	74,462	32,463	124,268
Total current liabilities	US$ in thousands	159,379	128,509	176,018	152,284	106,668
Cash ratio		0.96	1.59	1.40	1.52	2.54

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($151,791K + $1,072K) ÷ $159,379K
= 0.96

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet its short-term obligations without relying on additional financing.

Bio-Techne Corp's cash ratio has been gradually declining over the past five years, from 2.54 in 2020 to 0.96 in 2024. This decreasing trend suggests that the company's cash and cash equivalents may be decreasing relative to its short-term liabilities.

While a cash ratio of 0.96 in 2024 indicates that Bio-Techne Corp may not have enough cash on hand to cover its short-term obligations in the immediate future, it is important to consider other liquidity ratios and factors when evaluating the company's overall financial health. Further analysis of the company's cash flow, working capital management, and overall liquidity position would provide a more comprehensive assessment of its financial strength and ability to meet its short-term commitments.