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.
Peer comparison
Dec 31, 2023