Bio-Techne Corp (TECH)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.87 | 4.08 | 4.37 | 4.63 | 4.84 | 4.04 | 4.40 | 4.01 | 3.44 | 3.55 | 3.81 | 4.06 | 3.35 | 4.12 | 4.61 | 5.14 | 4.88 | 4.69 | 4.43 | 4.44 |
| Quick ratio | 2.47 | 2.49 | 2.54 | 2.76 | 3.29 | 2.65 | 2.97 | 2.74 | 2.51 | 2.60 | 2.79 | 2.86 | 2.48 | 3.15 | 3.50 | 3.89 | 3.69 | 3.61 | 3.39 | 3.19 |
| 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 |
Bio-Techne Corp has consistently maintained strong liquidity ratios over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown a stable trend ranging between 3.44 to 4.84. This indicates that Bio-Techne Corp has ample current assets to meet its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed a healthy pattern, ranging between 2.47 to 3.69. This suggests that the company has a strong ability to meet its short-term obligations even without relying on selling inventory.
Furthermore, the cash ratio, which assesses the company's ability to cover its short-term liabilities with its most liquid assets, shows consistent strength with values ranging between 0.96 to 2.73. This indicates that Bio-Techne Corp has a sufficient level of cash and cash equivalents to meet its immediate obligations.
Overall, the liquidity ratios of Bio-Techne Corp reflect a financially sound position with a strong ability to meet its short-term financial commitments across the reported periods.
Additional liquidity measure
| 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 conversion cycle | days | 152.83 | 137.90 | 132.80 | 139.34 | 138.62 | 133.36 | 117.05 | 103.54 | 107.47 | 110.34 | 99.24 | 103.54 | 106.37 | 126.58 | 119.08 | 119.99 | 123.44 | 119.40 | 115.27 | 122.94 |
The cash conversion cycle of Bio-Techne Corp has fluctuated over the past few quarters, indicating variations in the company's efficiency in managing its working capital. The trend shows that the cash conversion cycle has generally been around 100 to 150 days.
From December 2020 to June 2021, there was an increase in the cash conversion cycle, reaching as high as 152.83 days. This could suggest delays in converting inventory into cash or collecting receivables, impacting the company's liquidity during that period.
Subsequently, from June 2021 to March 2022, there was a decrease in the cash conversion cycle, indicating an improvement in working capital management efficiency, with the cycle approaching around 100 days.
However, from March 2022 to June 2024, there were fluctuations in the cash conversion cycle, hovering between 100 to 140 days. These fluctuations may be attributed to changes in sales patterns, inventory management, and collection of receivables during these quarters.
Overall, Bio-Techne Corp should continue monitoring and optimizing its cash conversion cycle to ensure effective working capital management, efficient operations, and sustained liquidity in the future.