Embecta Corp (EMBC)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Cash and cash equivalents	US$ in thousands	267,500	326,300	330,900
Short-term investments	US$ in thousands	—	200	—
Total current liabilities	US$ in thousands	374,000	353,500	301,000
Cash ratio		0.72	0.92	1.10

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($267,500K + $—K) ÷ $374,000K
= 0.72

The cash ratio of Embecta Corp has exhibited a declining trend over the past three years. As of September 30, 2024, the cash ratio stands at 0.72, representing a decrease from 0.92 in 2023 and a significant decrease from 1.10 in 2022. This declining trend may indicate that the company's ability to cover its short-term liabilities solely with its cash and cash equivalents has weakened over time. It is important for the company to closely monitor and manage its liquidity position to ensure it has sufficient cash on hand to meet its immediate financial obligations.