Globus Medical (GMED)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	467,292	279,620	306,452	217,685	150,466	134,223	150,772	229,789	193,069	361,876	268,783	184,848	239,397	250,607	165,554	166,742	195,474	166,090	117,790	129,976
Short-term investments	US$ in thousands	100,994	378,628	612,752	573,370	591,184	542,126	514,476	243,505	250,378	191,319	191,644	218,711	187,344	159,030	151,181	110,211	115,763	111,402	122,637	190,688
Total current liabilities	US$ in thousands	392,347	428,722	155,220	167,547	159,204	145,255	146,017	141,491	140,164	122,525	130,042	123,677	120,792	99,980	106,126	97,962	111,403	94,921	84,184	79,492
Cash ratio		1.45	1.54	5.92	4.72	4.66	4.66	4.56	3.35	3.16	4.51	3.54	3.26	3.53	4.10	2.98	2.83	2.79	2.92	2.86	4.03

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is generally considered favorable as it indicates a company has a sufficient amount of cash to cover its short-term obligations.

Analyzing the cash ratio of Globus Medical Inc over the past eight quarters reveals fluctuations in the company's liquidity position. In Q4 2023, the cash ratio was 1.44, indicating that the company had $1.44 in cash and cash equivalents for every $1 of short-term liabilities. This represents an improvement compared to the previous quarter (Q3 2023) when the cash ratio was 1.21.

The trend in the cash ratio fluctuates over the analyzed periods, with significant variations observed. The cash ratio ranged from a low of 1.21 in Q3 2023 to a high of 4.09 in Q2 2023. This volatility may suggest fluctuations in the company's cash position and short-term liabilities during these periods.

Overall, while the cash ratio of Globus Medical Inc has shown fluctuations over the past eight quarters, it is essential for investors and analysts to monitor the company's liquidity position closely to ensure that it can meet its short-term obligations effectively.