Veracyte Inc (VCYT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 372,267 285,621 248,636 243,102 375,679
Total current liabilities US$ in thousands 78,633 61,241 62,614 64,151 16,781
Current ratio 4.73 4.66 3.97 3.79 22.39

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $372,267K ÷ $78,633K
= 4.73

The current ratio of Veracyte Inc has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the current ratio was exceptionally high at 22.39, indicating a substantial level of current assets in relation to current liabilities. This suggests the company had a significant liquidity cushion during that year, potentially reflecting excess cash or liquid assets relative to short-term obligations.

By the end of 2021, the current ratio declined sharply to 3.79, representing a considerable decrease in the company's short-term liquidity position. Despite this decline, the ratio remained well above the generally acceptable threshold of 1.0, implying that the company continued to maintain sufficient short-term assets to cover its current liabilities.

In 2022, the current ratio experienced a slight upward adjustments, reaching 3.97. This increase indicates a modest improvement or stabilization in Veracyte Inc's liquidity profile, with current assets again surpassing current liabilities by nearly four times.

The year 2023 saw the current ratio increase further to 4.66, signaling a strengthening of liquidity relative to the previous year. The ratio suggests either an increase in current assets, a reduction in current liabilities, or a combination of both, enhancing the company's short-term financial flexibility.

Finally, as of December 31, 2024, the current ratio slightly increased again to 4.73. This marginal rise reinforces the trend of improving or maintaining a strong liquidity position, indicating the company's continued ability to meet its short-term obligations comfortably.

Overall, the progression of Veracyte Inc's current ratio from a peak of 22.39 in 2020 down to stabilized levels around 3.79–4.73 from 2021 onwards reflects a normalization process in liquidity management. The ratios suggest the company's liquidity position remains robust, with current assets notably exceeding current liabilities throughout the period.