Globus Medical (GMED)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 784,438 | 467,292 | 150,466 | 193,069 | 239,397 |
| Short-term investments | US$ in thousands | 105,619 | 50,497 | 295,592 | 250,378 | 187,344 |
| Total current liabilities | US$ in thousands | 855,913 | 392,347 | 159,204 | 140,164 | 120,792 |
| Cash ratio | 1.04 | 1.32 | 2.80 | 3.16 | 3.53 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($784,438K
+ $105,619K)
÷ $855,913K
= 1.04
The cash ratio of Globus Medical has shown a declining trend over the past five years. Starting at a healthy level of 3.53 in December 2020, it decreased to 3.16 by December 2021, further dropping to 2.80 by December 2022. The ratio experienced a significant decline to 1.32 by December 2023, indicating a potential liquidity issue. By the end of December 2024, the cash ratio further decreased to 1.04, suggesting that the company may be facing challenges in meeting its short-term obligations with its available cash reserves. It is important for Globus Medical to closely monitor and manage its cash position to ensure it can fulfill its financial obligations effectively.
Peer comparison
Dec 31, 2024