Artivion Inc (AORT)

Artivion Inc's liquidity ratios have shown a general trend of being comfortably above industry standards over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has remained consistently high, ranging from 3.88 to 5.51. This indicates that Artivion Inc has a strong ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, has also been above 2.0 in all years, ranging from 2.66 to 3.80. This suggests that Artivion Inc can cover its short-term liabilities without relying on selling inventory.

The cash ratio, which reflects the company's capacity to cover its short-term liabilities with cash and cash equivalents, has fluctuated between 1.72 and 2.51. While this ratio is lower compared to the current and quick ratios, it still demonstrates that Artivion Inc has a sufficient level of readily available cash to meet its immediate financial obligations.

Overall, Artivion Inc's liquidity ratios indicate that the company has a strong financial position in terms of its ability to meet short-term obligations. A high current ratio, healthy quick ratio, and a stable cash ratio suggest that the company is effectively managing its liquidity and has sufficient resources to navigate through short-term challenges.

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Additional liquidity measure

The cash conversion cycle of Artivion Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 277.20 days, which was a slight improvement from the previous year's cycle of 285.88 days. This suggests that in 2023, Artivion was able to more efficiently convert its investments in inventory and accounts receivable into cash.

Comparing to 2021 and 2020, where the cash conversion cycle was 310.80 days and 341.17 days respectively, Artivion's performance has improved significantly. This indicates that the company has focused on managing its inventory and accounts receivable more effectively, resulting in a quicker conversion of these assets into cash.

However, when looking back to 2019, where the cash conversion cycle was 243.28 days, it appears that in 2023, Artivion took slightly longer to convert its resources into cash. This could be a sign that the company may have faced challenges in managing its working capital efficiently during that year.

Overall, maintaining a focus on optimizing the cash conversion cycle is crucial for Artivion Inc to ensure effective management of its working capital and enhance its overall liquidity position.