CONMED Corporation (CNMD)

The liquidity ratios of Conmed Corp. for the past five years reveal trends in the company's ability to meet its short-term obligations.

1. Current Ratio:
- Conmed Corp.'s current ratio has been relatively stable over the past five years, ranging from 1.96 to 2.34. This indicates that the company has consistently had more than enough current assets to cover its current liabilities. A current ratio above 1 suggests that the company is in a good position to pay off its short-term debts.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Conmed Corp.'s quick ratio has fluctuated over the years but has generally remained above 1, indicating that the company has an acceptable level of quick assets to cover current liabilities. However, there was a slight decline in the quick ratio in 2022, which could warrant further investigation.

3. Cash Ratio:
- The cash ratio focuses solely on the company's ability to cover its current liabilities with its cash and cash equivalents. Conmed Corp.'s cash ratio has remained relatively stable around 0.2 over the past five years. This indicates that the company holds only a small proportion of its current liabilities in cash, which may suggest reliance on other liquid assets to meet short-term obligations.

In summary, Conmed Corp. has maintained healthy liquidity ratios over the years, with the current and quick ratios generally above 1, signaling a strong ability to meet short-term obligations. However, the cash ratio indicates a lower level of cash holdings relative to current liabilities, suggesting a reliance on other liquid assets for liquidity purposes.

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Additional liquidity measure

The cash conversion cycle of Conmed Corp. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 218.78 days from 266.09 days in 2022. This indicates that Conmed Corp. took fewer days to convert its investment in inventory into cash in 2023 compared to the previous year.

However, it is important to note that the cash conversion cycle was higher in 2023 compared to the levels seen in 2021 and 2020, which were 209.45 days and 203.45 days, respectively. This suggests that Conmed Corp. took longer to convert its resources into cash in 2023 than in those prior years.

Furthermore, the cash conversion cycle in 2019 was the lowest at 164.41 days, indicating that Conmed Corp. was more efficient in managing its cash conversion process that year.

Overall, the trend in Conmed Corp.'s cash conversion cycle indicates some variability in the efficiency of its working capital management over the past five years. Further analysis of the company's operating and financial activities would be required to understand the underlying factors driving these fluctuations in the cash conversion cycle.