Veracyte Inc (VCYT)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 239,087 216,454 154,247 173,197 349,364
Short-term investments US$ in thousands 50,354 0 24,605 3,964 —
Receivables US$ in thousands 46,525 40,378 44,021 41,461 18,461
Total current liabilities US$ in thousands 78,633 61,241 62,614 64,151 16,781
Quick ratio 4.27 4.19 3.56 3.41 21.92

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($239,087K + $50,354K + $46,525K) ÷ $78,633K
= 4.27

The quick ratio of Veracyte Inc has exhibited notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. As of December 31, 2020, the company's quick ratio was exceptionally high at 21.92, indicating a substantial level of liquid assets relative to current liabilities at that time. This unusually elevated ratio suggests the presence of significant liquid assets or potentially an extraordinary situation affecting liquidity that year.

In the subsequent year, the quick ratio experienced a substantial decline to 3.41 by December 31, 2021. Despite this decrease, the ratio remained well above 1, implying that the company retained a strong liquidity position, capable of covering its current liabilities with its most liquid assets.

From 2021 to 2022, the ratio increased slightly to 3.56, indicating a marginal improvement in liquidity resources relative to current obligations. This stability reflects an efficient management of liquid assets during that period.

Over the next two years, there has been a gradual upward trend, with the quick ratio reaching 4.19 as of December 31, 2023, and further increasing marginally to 4.27 by December 31, 2024. These incremental increases suggest an enhancement in the company's liquidity position, possibly due to increased liquid assets or a reduction in current liabilities relative to liquid assets.

Overall, the trend observed indicates that Veracyte Inc has maintained a consistently strong liquidity profile throughout the period. The significant initial disparity at the end of 2020 might be attributed to specific factors affecting that year's financials, but the subsequent stabilization and gradual increase in the quick ratio imply effective management of liquidity and short-term assets over time.