CONMED Corporation (CNMD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	24,459	24,296	28,942	20,847	27,356
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	278,130	310,729	296,552	196,646	190,201
Cash ratio		0.09	0.08	0.10	0.11	0.14

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,459K + $—K) ÷ $278,130K
= 0.09

The cash ratio of CONMED Corporation has shown a downward trend over the past five years. As of December 31, 2020, the cash ratio stood at 0.14, indicating that the company had $0.14 in cash for every $1 of current liabilities. This ratio decreased to 0.11 by December 31, 2021, further declining to 0.10 by the end of 2022. By December 31, 2023, the cash ratio dropped to 0.08, suggesting a lower liquidity position compared to previous years. However, there was a slight improvement by December 31, 2024, with the cash ratio increasing to 0.09.

Overall, the decreasing trend in the cash ratio raises concerns about CONMED Corporation's ability to cover its short-term obligations solely with its available cash and cash equivalents. Management should carefully monitor the company's liquidity position and consider strategies to improve cash reserves to ensure financial stability and meet upcoming obligations.