Glaukos Corp (GKOS)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 5.99 | 5.34 | 6.13 | 7.67 | 9.45 |
| Quick ratio | 5.05 | 4.53 | 5.37 | 7.21 | 9.05 |
| Cash ratio | 4.25 | 3.99 | 4.87 | 6.68 | 8.33 |
Glaukos Corp's liquidity ratios have shown a downward trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has decreased from 9.45 in December 2020 to 5.99 in December 2024. This indicates a slight decrease in the company's short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also declined from 9.05 in December 2020 to 5.05 in December 2024. This indicates that Glaukos Corp may have slightly less ability to meet its short-term obligations using its most liquid assets.
Lastly, the cash ratio, which measures the company's ability to cover short-term liabilities with cash and cash equivalents, has decreased from 8.33 in December 2020 to 4.25 in December 2024. This suggests that the company's reliance on cash to meet short-term obligations has decreased over the years.
Overall, the decreasing trend in Glaukos Corp's liquidity ratios raises some concerns about the company's short-term financial health and ability to meet its upcoming obligations. It may be prudent for stakeholders to closely monitor these ratios and consider the company's liquidity management strategies moving forward.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 101.25 | 80.16 | 78.90 | 66.90 | 77.90 |
The cash conversion cycle of Glaukos Corp has exhibited fluctuations over the past five years. Starting at 77.90 days on December 31, 2020, the cycle decreased to 66.90 days by the end of 2021, indicating an improvement in the company's management of its working capital. However, by December 31, 2022, the cycle increased to 78.90 days, surpassing the initial figure. The cycle further extended to 80.16 days by the end of 2023, indicating a slowdown in the company's cash conversion efficiency.
Notably, by the end of 2024, the cash conversion cycle significantly expanded to 101.25 days, representing a marked increase in the time it takes for Glaukos Corp to convert its investments in inventory and other resources into cash inflows from sales. This prolonged cycle may suggest potential challenges in managing liquidity and working capital effectively. Overall, monitoring the cash conversion cycle is crucial for assessing the company's operational efficiency and financial health.