Glaukos Corp (GKOS)

Glaukos Corporation's liquidity ratios have shown a consistent trend of strong liquidity position over the past five years. The current ratio has been above 4 in each year, indicating that the company has more than enough current assets to cover its short-term obligations. This ratio has been on a decreasing trend, from 9.45 in 2020 to 5.34 in 2023, which may signal a decrease in the company's ability to meet its short-term liabilities using current assets.

The quick ratio, which only considers the most liquid assets, also reflects a robust liquidity position for Glaukos Corporation. Similar to the current ratio, the quick ratio has been consistently above 3 in all years, with a decreasing trend over the years. This implies that the company has a strong ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, has also been strong for Glaukos Corporation. The company has consistently maintained a cash ratio above 3, indicating that it has sufficient cash on hand to cover its short-term liabilities. Similar to the other ratios, the cash ratio has been decreasing over the years, which may warrant further analysis on the company's cash management practices.

Overall, based on these liquidity ratios, Glaukos Corporation appears to have a strong liquidity position, with the ability to meet its short-term obligations comfortably. However, the decreasing trends in these ratios over the years suggest a potential reduction in the company's liquidity cushion, which may require monitoring and further investigation to ensure continued financial stability.

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Additional liquidity measure

The cash conversion cycle of Glaukos Corporation has shown fluctuations over the past five years. In 2019, the company had a significantly prolonged cash conversion cycle of 407.23 days, indicating a lengthy period for converting investments in inventory to cash. Subsequently, there was a notable improvement in the cash conversion cycle in 2020, which decreased to 104.02 days, reflecting a more efficient management of working capital.

In the following years, there was a steady increase in the cash conversion cycle, reaching 127.40 days in 2021 and further rising to 170.57 days in 2022. This upward trend suggests a potential strain on the company's liquidity and operational efficiency. However, in 2023, there was a noticeable spike in the cash conversion cycle to 184.08 days, indicating possible challenges in managing inventories, accounts receivable, and accounts payable effectively.

Overall, Glaukos Corporation's cash conversion cycle has exhibited variability over the years, potentially signaling fluctuations in working capital management and operational efficiency. It would be essential for the company to closely monitor and address the factors contributing to the prolonged cash conversion cycle to ensure optimal financial performance and liquidity management.