Globus Medical (GMED)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	467,292	150,466	193,069	239,397	195,474
Short-term investments	US$ in thousands	100,994	591,184	250,378	187,344	115,763
Total current liabilities	US$ in thousands	392,347	159,204	140,164	120,792	111,403
Cash ratio		1.45	4.66	3.16	3.53	2.79

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($467,292K + $100,994K) ÷ $392,347K
= 1.45

The cash ratio of Globus Medical Inc has shown a fluctuating trend over the past five years. In 2023, the cash ratio stands at 1.44, representing a decrease from the previous year's ratio of 2.96. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover such obligations.

Despite the decrease in 2023, the company's cash ratio remains relatively healthy and above 1, indicating that it has sufficient cash on hand to cover its short-term liabilities. It is important to note that the cash ratio should be analyzed in conjunction with other liquidity ratios to provide a more comprehensive view of the company's financial health.

Going forward, monitoring the trend of the cash ratio will be crucial to assess the company's liquidity position and its ability to meet its short-term financial obligations effectively.