Enovis Corp (ENOV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 48,167 | 36,191 | 24,295 | 719,370 | 97,068 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 528,998 | 369,607 | 565,199 | 1,023,580 | 811,658 |
| Cash ratio | 0.09 | 0.10 | 0.04 | 0.70 | 0.12 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($48,167K
+ $—K)
÷ $528,998K
= 0.09
The cash ratio of Enovis Corp has displayed fluctuations over the past five years, ranging from 0.04 to 0.70. The ratio provides insight into the company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other current assets or external financing.
In December 31, 2020, the cash ratio was relatively low at 0.12, suggesting that Enovis Corp had limited cash reserves compared to its short-term liabilities at that point in time. However, by December 31, 2021, the company improved its cash ratio significantly to 0.70, indicating a healthier liquidity position.
Following the peak in 2021, there was a notable decline in the cash ratio to 0.04 by December 31, 2022, which may raise concerns about the company's liquidity management. The ratio slightly recovered to 0.10 by December 31, 2023, but remained below the levels observed in 2021. By December 31, 2024, the cash ratio stood at 0.09, indicating that Enovis Corp may still need to enhance its cash reserves to comfortably cover its short-term obligations.
Overall, Enovis Corp's cash ratio trend reflects fluctuations in its liquidity position over the years, emphasizing the importance of effective cash management to ensure the company's ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2024