Embecta Corp (EMBC)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	298,700	326,500	317,400	346,400	385,200	330,900	292,300	264,300	0
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	326,600	353,500	385,800	357,700	370,300	301,000	228,500	168,900	159,100
Cash ratio		0.91	0.92	0.82	0.97	1.04	1.10	1.28	1.56	0.00

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($298,700K + $—K) ÷ $326,600K
= 0.91

The cash ratio of Embecta Corp has shown some fluctuations over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In the most recent quarter, the cash ratio was 0.91, indicating that Embecta Corp had $0.91 in cash and cash equivalents for every dollar of current liabilities. This ratio has been relatively stable around the range of 0.82 to 0.97 over the last year, with a peak of 1.56 in March 2022.

Overall, the cash ratio of Embecta Corp suggests that the company has a moderate ability to cover its short-term obligations with its available cash reserves. It is important for the company to maintain a healthy cash position to ensure its ability to meet its financial commitments in the near term.