CONMED Corporation (CNMD)
Liquidity ratios
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
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Current ratio | 2.30 | 2.27 | 2.34 | 2.18 | 1.98 | 1.66 | 1.74 | 1.90 | 1.96 | 2.75 | 2.87 | 2.60 | 2.34 | 2.42 | 2.23 | 2.33 | 2.19 | 2.26 | 2.51 | 2.46 |
Quick ratio | 0.09 | 0.14 | 0.11 | 0.12 | 0.08 | 0.08 | 0.08 | 0.08 | 0.10 | 0.16 | 0.26 | 0.13 | 0.11 | 0.17 | 0.23 | 0.20 | 0.14 | 0.20 | 0.23 | 0.15 |
Cash ratio | 0.09 | 0.14 | 0.11 | 0.12 | 0.08 | 0.08 | 0.08 | 0.08 | 0.10 | 0.16 | 0.26 | 0.13 | 0.11 | 0.17 | 0.23 | 0.20 | 0.14 | 0.20 | 0.23 | 0.15 |
CONMED Corporation's liquidity ratios provide insight into its ability to meet short-term obligations. The current ratio has shown fluctuation over the years, with a general trend of staying above 2. This indicates that CONMED has more than enough current assets to cover its current liabilities, providing a comfortable buffer for short-term obligations.
In contrast, the quick ratio, which excludes inventory from current assets, shows a more conservative picture of liquidity. It has generally been below 1, indicating that CONMED may have difficulty meeting its short-term obligations if it cannot rely on selling inventory quickly.
Lastly, the cash ratio, which is the most stringent measure of liquidity, has also been consistently low, indicating a limited ability to cover current liabilities solely with cash on hand.
Overall, CONMED Corporation has maintained a healthy current ratio but shows some weakness in its quick and cash ratios, suggesting a potential need to manage inventory levels and increase cash reserves to improve its short-term liquidity position.
Additional liquidity measure
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
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Cash conversion cycle | days | 213.57 | 212.76 | 200.62 | 204.29 | 205.15 | 219.16 | 225.59 | 240.95 | 255.78 | 235.05 | 231.70 | 208.25 | 191.03 | 188.84 | 175.54 | 182.53 | 176.86 | 163.52 | 157.55 | 148.74 |
The cash conversion cycle of CONMED Corporation shows a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The cycle started at 148.74 days in March 2020 and experienced a gradual increase, peaking at 255.78 days in December 2022.
Subsequently, there was a decreasing trend in the cash conversion cycle, reaching 200.62 days in June 2024. This downward trend continued with a slight increase to 213.57 days by December 2024. Overall, the company's cash conversion cycle has shown volatility over time, indicating varying efficiencies in managing its cash, inventory, and receivables.
A longer cash conversion cycle suggests that the company takes more time to convert its investments in inventory and accounts receivable into cash. Conversely, a shorter cycle indicates a more efficient working capital management. CONMED Corporation may need to focus on optimizing its working capital processes to reduce the cycle duration and improve cash flow efficiency.