Glaukos Corp (GKOS)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 5.99 5.54 5.48 5.38 5.34 5.95 6.28 6.67 6.13 7.40 6.78 8.84 7.67 7.91 1.40 1.41 9.45 9.73 8.27 4.53
Quick ratio 5.05 4.45 4.46 4.42 4.53 5.07 5.37 5.70 5.37 6.54 6.15 8.10 7.21 7.32 1.31 1.32 9.05 9.02 7.69 3.77
Cash ratio 4.25 3.66 3.73 3.78 3.99 4.48 4.76 5.09 4.87 5.97 5.63 7.47 6.68 6.76 1.20 1.21 8.33 8.32 7.20 3.21

Based on the data provided, we can analyze Glaukos Corp's liquidity ratios over the past few years.

1. Current Ratio: The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets. Glaukos Corp's current ratio has fluctuated over the years but generally remains above 1, indicating that the company has more than enough current assets to cover its current liabilities. The ratio peaked at 9.73 on September 30, 2020, suggesting a strong liquidity position, but it decreased to 5.34 on December 31, 2023, before rebounding to 5.99 on December 31, 2024.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Glaukos Corp's quick ratio follows a similar trend to the current ratio, indicating a strong ability to meet short-term obligations without relying on inventory. The ratio peaked at 9.05 on December 31, 2020, and hit a low of 4.42 on March 31, 2024.

3. Cash Ratio: The cash ratio measures a company's ability to cover its current liabilities with cash and cash equivalents alone. Glaukos Corp's cash ratio also shows a declining trend over the years, signaling a decreasing ability to cover short-term liabilities with cash reserves only. The ratio ranged from a high of 8.33 on December 31, 2020, to a low of 3.66 on September 30, 2024.

Overall, Glaukos Corp generally maintains strong liquidity ratios, as seen in the current, quick, and cash ratios, which indicate the company's ability to meet its short-term financial obligations. However, it is essential for the company to monitor these ratios closely to ensure continued liquidity and financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 103.37 108.42 104.47 96.27 81.10 85.47 89.62 86.74 80.18 77.66 55.91 67.69 64.37 60.28 63.96 66.54 74.84 73.01 62.66 65.51

The cash conversion cycle of Glaukos Corp has fluctuated over the years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales, highlighting the efficiency of its working capital management.

From March 2020 to December 2024, Glaukos Corp's cash conversion cycle ranged from a low of 55.91 days to a high of 108.42 days. A lower cash conversion cycle indicates that the company is more efficient in managing its working capital, as it takes less time to convert inventory into cash.

Glaukos Corp experienced fluctuations in its cash conversion cycle over the period, with some quarters showing improvements in efficiency while others displaying a longer cycle. The company's management should closely monitor this metric to ensure optimal working capital management, as a longer cash conversion cycle could potentially signal operational inefficiencies or liquidity challenges.

Overall, understanding and analyzing the cash conversion cycle is essential for assessing a company's ability to manage its cash flow, liquidity, and working capital effectively, which are crucial aspects of financial health and operational efficiency.