Enovis Corp (ENOV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 36,191 | 24,295 | 680,252 | 97,068 | 109,632 |
| Short-term investments | US$ in thousands | — | — | 0 | — | — |
| Receivables | US$ in thousands | 291,483 | 267,380 | 638,700 | 517,006 | 561,865 |
| Total current liabilities | US$ in thousands | 369,607 | 565,199 | 1,023,580 | 811,658 | 857,314 |
| Quick ratio | 0.89 | 0.52 | 1.29 | 0.76 | 0.78 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($36,191K
+ $—K
+ $291,483K)
÷ $369,607K
= 0.89
The quick ratio of Enovis Corp has fluctuated over the past five years. In 2023, the quick ratio improved significantly to 1.16, indicating that the company had $1.16 in liquid assets available to cover each dollar of its current liabilities. This suggests an improvement in Enovis Corp's short-term liquidity position compared to the previous year.
In 2022, the quick ratio was relatively low at 0.65, indicating that the company had only $0.65 in liquid assets for every dollar of current liabilities. This could have raised concerns about the company's ability to meet its short-term obligations.
The quick ratio was strong in 2021 at 1.49, suggesting that Enovis Corp had a comfortable cushion of liquid assets to cover its short-term liabilities. This indicates a healthy liquidity position for the company during that period.
On the other hand, in 2020 and 2019, the quick ratios were 0.98 and 0.97 respectively, indicating that the company had just enough liquid assets to cover its short-term liabilities during those years.
Overall, fluctuations in the quick ratio of Enovis Corp over the past five years suggest varying levels of liquidity and ability to meet short-term obligations. It is essential for the company to maintain a healthy quick ratio to ensure financial stability and resilience against unexpected events.
Peer comparison
Dec 31, 2023