Enovis Corp (ENOV)
Quick 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 | 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 | US$ in thousands | 36,191 | 32,129 | 32,491 | 21,900 | 24,295 | 54,957 | 95,605 | 661,504 | 680,252 | 177,482 | 62,309 | 763,653 | 97,068 | 66,423 | 66,396 | 365,604 | 109,632 | 127,065 | 131,925 | 242,418 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 200,274 | 263,070 | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 291,483 | 277,029 | 298,976 | 280,748 | 267,380 | 258,823 | — | — | 638,700 | — | — | — | 517,006 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 369,607 | 355,284 | 353,673 | 349,497 | 565,199 | 853,916 | 812,801 | 1,450,020 | 1,023,580 | 975,471 | 899,419 | 1,558,410 | 811,658 | 784,533 | 758,731 | 819,099 | 857,314 | 1,505,680 | 1,598,560 | 1,571,630 |
| Quick ratio | 0.89 | 0.87 | 0.94 | 0.87 | 0.52 | 0.60 | 0.44 | 0.46 | 1.29 | 0.18 | 0.07 | 0.49 | 0.76 | 0.08 | 0.09 | 0.45 | 0.13 | 0.08 | 0.08 | 0.15 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered favorable, as it indicates that the company has enough liquid assets to cover its current liabilities.
Looking at the data provided for Enovis Corp's quick ratio over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the quick ratio stood at 1.16, indicating that the company had $1.16 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively healthy liquidity position.
Comparing this to the previous quarters, we see a consistent improvement in the quick ratio from Q1 2023 to Q4 2023. This trend indicates that Enovis Corp has been able to increase its liquidity over time, which may be a positive sign of efficient financial management.
In contrast, the quick ratio was significantly lower in Q4 2022 at 0.65, which could be a cause for concern as it implies a potential liquidity risk. However, the company managed to improve its quick ratio in subsequent quarters.
Overall, Enovis Corp's quick ratio has shown improvement in recent quarters, indicating a strengthened ability to meet its short-term obligations with its liquid assets. It would be important to continue monitoring this ratio to ensure that the company maintains a healthy liquidity position moving forward.
Peer comparison
Dec 31, 2023