CONMED Corporation (CNMD)

Liquidity ratios

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
Current ratio 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 2.11 2.48 2.55 2.58
Quick ratio 0.86 0.69 0.73 0.75 0.74 1.11 1.27 1.11 1.04 1.08 1.09 1.10 1.08 1.13 1.18 1.19 1.14 1.27 1.29 1.29
Cash ratio 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 0.14 0.19 0.14 0.15

Conmed Corp.'s liquidity ratios have displayed some fluctuations over the eight quarters presented. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown some variation, ranging from a low of 1.66 in Q3 2023 to a high of 2.87 in Q2 2022. Generally, a current ratio above 1 indicates a company is able to meet its short-term liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also fluctuated. The quick ratio has ranged from a low of 0.80 in Q3 2023 to a high of 1.43 in Q3 2022. A quick ratio above 1 signifies a company has enough liquid assets to cover its short-term obligations without relying on selling inventory.

Conversely, the cash ratio, which is the most conservative measure of liquidity that considers only cash and cash equivalents, has displayed a downward trend over the quarters presented. The cash ratio has decreased from 0.42 in Q2 2022 to 0.18 in Q4 2023. A lower cash ratio indicates a lower ability to cover short-term liabilities with cash on hand.

Overall, while Conmed Corp.'s current and quick ratios generally indicate good liquidity levels, the declining trend in the cash ratio warrants further monitoring to ensure the company can meet its short-term obligations with available cash resources.

Additional liquidity measure

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 conversion cycle days 218.78 236.00 244.89 256.68 266.09 245.20 243.32 218.44 209.45 211.37 192.32 200.97 203.45 181.85 181.99 163.77 164.41 179.84 182.01 179.50

The cash conversion cycle of Conmed Corp. has shown some variability over the past eight quarters. In Q1 2022, the company had a relatively low cash conversion cycle of 218.44 days, indicating a faster conversion of inventory to cash. However, the cycle increased in Q2 and Q3 2022 to 243.32 days and 245.20 days, respectively, reflecting a slowdown in the conversion process.

In Q4 2022 and Q1 2023, the cash conversion cycle continued to lengthen, reaching 266.09 days and 256.68 days, respectively. This indicates that Conmed Corp. took more time to convert its inventory and receivables into cash during these periods.

There was a slight improvement in the cash conversion cycle in Q2 and Q3 2023, with values of 244.89 days and 236.00 days, respectively. However, it increased again in Q4 2023 to 218.78 days.

Overall, the trend in Conmed Corp.'s cash conversion cycle shows some fluctuations, with periods of both improvement and deterioration. Monitoring and managing this cycle effectively is crucial for the company to optimize cash flow and operational efficiency.