Veracyte Inc (VCYT)

Cash ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Cash and cash equivalents US$ in thousands 219,499 186,120 239,087 274,079 235,915 209,188 216,454 202,463 191,142 177,890 154,247 170,112 153,447 163,615 173,197 164,029 327,545 324,062 349,364 345,080
Short-term investments US$ in thousands 101,220 101,235 50,354 — — — 0 0 0 0 24,605 0 10,551 — 3,964 4,100 — — — —
Total current liabilities US$ in thousands 76,433 75,125 78,633 70,313 72,339 58,052 61,241 57,260 58,151 55,993 62,614 58,352 59,345 62,543 64,151 50,037 36,105 32,709 16,781 13,919
Cash ratio 4.20 3.83 3.68 3.90 3.26 3.60 3.53 3.54 3.29 3.18 2.86 2.92 2.76 2.62 2.76 3.36 9.07 9.91 20.82 24.79

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($219,499K + $101,220K) ÷ $76,433K
= 4.20

The cash ratio of Veracyte Inc demonstrates a declining trend from September 30, 2020, through the first half of 2021, where it peaked at approximately 24.79. During this period, the company maintained a relatively high liquidity buffer, indicating substantial cash reserves relative to its current liabilities.

Subsequently, from December 31, 2020, onward, the cash ratio experienced a significant decline, reaching a low of around 2.62 by March 31, 2022. This decrease may suggest a reduction in cash holdings or an increase in current liabilities, reflecting a shift in liquidity management or operational needs.

From mid-2022 onward, the cash ratio stabilized at a lower level, fluctuating modestly within a narrow range roughly between 2.76 and 3.90. Notably, the ratio showed a gradual upward trend from September 30, 2022, through September 30, 2023, reaching approximately 3.54, then slightly increasing to 3.83 by March 31, 2025.

This pattern indicates that while the company's cash reserves relative to current liabilities have decreased substantially from early 2021, they have since stabilized at a lower but more consistent level. The modest upward trajectory in recent periods suggests a potential focus on maintaining sufficient cash liquidity, possibly in response to operational needs or strategic financial management. Overall, the cash ratio's decline and stabilization reflect a transition from a high-cash position to a cautiously maintained liquidity level.