Glaukos Corp (GKOS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,467 | 119,525 | 100,708 | 96,596 | 62,430 |
| Short-term investments | US$ in thousands | 201,964 | 233,170 | 322,792 | 317,304 | 120,870 |
| Total current liabilities | US$ in thousands | 74,014 | 72,359 | 63,360 | 49,702 | 57,700 |
| Cash ratio | 3.99 | 4.87 | 6.68 | 8.33 | 3.18 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,467K
+ $201,964K)
÷ $74,014K
= 3.99
The cash ratio of Glaukos Corporation has shown some fluctuations over the past five years. The trend indicates a decrease from 8.40 in 2020 to 4.24 in 2023. This could imply that the company has lower cash reserves relative to its current liabilities in 2023 compared to previous years. However, the ratio remains above 1 in all years, indicating the company has sufficient cash to cover its short-term obligations.
It is essential to note that a higher cash ratio typically suggests a stronger liquidity position, as it indicates the company has more cash readily available to cover its short-term liabilities. Conversely, a lower cash ratio may indicate potential liquidity challenges, although a ratio above 1 still indicates that the company can meet its short-term obligations with its cash on hand.
Overall, while the decreasing trend in the cash ratio of Glaukos Corporation is worth monitoring, the company's cash reserves appear to be at a reasonable level to meet its short-term financial commitments as of 2023.
Peer comparison
Dec 31, 2023