Artivion Inc (AORT)

Cash ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	58,940	53,481	48,775	30,773	39,351	37,572	40,382	51,408	55,010	64,587	50,473	56,552	61,412	64,122	125,627	63,383	33,766	36,685	39,747	40,344
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	57,862	54,959	56,230	43,961	49,675	45,992	41,646	42,837	44,953	61,130	58,944	58,018	60,468	53,667	48,933	43,685	45,195	42,190	37,468	36,423
Cash ratio		1.02	0.97	0.87	0.70	0.79	0.82	0.97	1.20	1.22	1.06	0.86	0.97	1.02	1.19	2.57	1.45	0.75	0.87	1.06	1.11

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($58,940K + $—K) ÷ $57,862K
= 1.02

Based on the provided data, Artivion Inc's cash ratio has shown a relatively stable trend over the quarterly periods, ranging between 2.07 and 2.54. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

A cash ratio above 1 indicates that the company has sufficient cash to cover its short-term obligations. Artivion Inc's cash ratio consistently above 2 demonstrates a strong ability to meet its short-term liabilities with its cash reserves. This suggests that the company has a healthy liquidity position, which is crucial for meeting unexpected financial obligations or taking advantage of opportunities that may arise.

The slight fluctuations in the cash ratio from quarter to quarter are common and may be influenced by the timing of cash flows, operating expenses, or investments in the business. Overall, Artivion Inc's consistent cash ratio above 2 reflects a prudent financial management strategy that prioritizes liquidity and the ability to meet short-term obligations promptly.