The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Balchem's current ratio for the quarter that ended in Dec. 2024 was 1.99.
Balchem has a current ratio of 1.99. It generally indicates good short-term financial strength.
The historical rank and industry rank for Balchem's Current Ratio or its related term are showing as below:
BCPC'
s Current Ratio Range Over the Past 10 Years
Min: 1.84 Med: 2.32 Max: 2.83
Current: 1.99
During the past 13 years, Balchem's highest Current Ratio was 2.83. The lowest was 1.84. And the median was 2.32.
BCPC's Current Ratio is ranked better than 53.36% of 1563
companies
in the Chemicals industry
Industry Median: 1.91
vs BCPC: 1.99
Balchem Current Ratio Historical Data
The historical data trend for Balchem's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Chemicals subindustry, Balchem's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Balchem's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Balchem's Current Ratio distribution charts can be found below:
* The bar in red indicates where Balchem's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Balchem (NAS:BCPC) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Balchem Current Ratio Related Terms
Thank you for viewing the detailed overview of Balchem's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Balchem Corp is engaged in the development, manufacture, and marketing of specialty performance ingredients and products for various industries. The company's reportable segments are; Human Nutrition and Health, which generates maximum revenue, and provides human-grade choline nutrients and mineral amino acid chelated products through this segment for nutrition and health applications; Animal Nutrition and Health, which provides nutritional products derived from its microencapsulation and chelation technologies in addition to the essential nutrient choline chloride; and the Specialty Products segment includes re-packaging and distributing several performance gases and chemicals. Geographically, the company derives its key revenue from the United States and the rest from foreign countries.
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