Bio-Techne Corp (TECH)

Quick 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	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
Receivables	US$ in thousands	241,394	227,887	207,451	204,570	218,468	216,415	184,763	174,174	194,548	202,095	152,896	147,548	145,385	157,790	128,243	122,635	122,534	117,452	111,753	122,724
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
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

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($151,791K + $1,072K + $241,394K) ÷ $159,379K
= 2.47

The quick ratio of Bio-Techne Corp has shown fluctuations over the past few quarters, ranging from 2.47 to 3.89. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

Analyzing the trend, it is evident that the quick ratio has generally remained above 2, indicating a healthy liquidity position. Higher quick ratios suggest a lower risk of financial distress due to the ability to meet short-term obligations promptly.

The quick ratio peaked at 3.89 in the third quarter of 2020, indicating a strong ability to cover short-term liabilities with liquid assets. However, there was a decrease in the ratio in subsequent quarters, reaching a low of 2.47 in the most recent quarter, which may indicate a slight decrease in liquidity compared to the peak.

Overall, Bio-Techne Corp's quick ratio reflects a solid liquidity position, although fluctuations in the ratio imply changes in the company's liquidity management. It is important to monitor these ratios over time to assess the company's ongoing ability to meet its short-term obligations effectively.