Bio-Techne Corp (TECH)

Cash ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	151,791	139,915	130,132	148,663	180,571	127,282	164,682	165,257	172,567	160,821	211,845	196,321	199,091	186,136	165,526	169,404	146,625	156,216	110,293	99,891
Short-term investments	US$ in thousands	1,072	5,397	5,520	—	23,739	29,915	32,074	37,818	74,462	70,351	67,135	38,740	32,463	90,108	117,426	117,986	124,268	104,872	133,657	58,520
Total current liabilities	US$ in thousands	159,379	149,820	135,231	127,754	128,509	141,163	128,395	137,629	176,018	166,838	154,809	133,992	152,284	137,640	117,568	105,424	106,668	104,985	104,953	88,268
Cash ratio		0.96	0.97	1.00	1.16	1.59	1.11	1.53	1.48	1.40	1.39	1.80	1.75	1.52	2.01	2.41	2.73	2.54	2.49	2.32	1.79

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 short-term obligations without relying on external sources of funding.

In the case of Bio-Techne Corp, the cash ratio has fluctuated over the past few quarters, ranging from 0.96 to 2.73. The trend shows that the company's cash position has generally been strong, with the ratio consistently above 1.00, indicating that the company has more than enough cash to cover its current liabilities.

The peak cash ratio of 2.73 in September 2020 suggests that Bio-Techne had a significant amount of cash on hand relative to its short-term obligations at that time. However, the ratio decreased in subsequent quarters but remained above 1.00, indicating continued financial stability.

Overall, based on the cash ratio data provided, Bio-Techne Corp appears to have a healthy level of liquidity, with a consistent ability to cover its short-term liabilities with its cash reserves over the analyzed period.