Globus Medical (GMED)

Cash ratio

		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 and cash equivalents	US$ in thousands	784,438	622,766	410,424	354,062	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
Short-term investments	US$ in thousands	105,619	71,940	82,509	80,408	50,497	189,314	306,376	286,685	295,592	271,063	257,238	243,505	250,378	191,319	191,644	218,711	187,344	159,030	151,181	110,211
Total current liabilities	US$ in thousands	855,913	818,065	794,146	786,324	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
Cash ratio		1.04	0.85	0.62	0.55	1.32	1.09	3.95	3.01	2.80	2.79	2.79	3.35	3.16	4.51	3.54	3.26	3.53	4.10	2.98	2.83

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 fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio represents the proportion of a company's current assets in the form of cash and cash equivalents relative to its current liabilities. A higher cash ratio indicates that a company has more liquid assets available to cover its short-term liabilities.

Globus Medical's cash ratio showed an increasing trend from March 31, 2020, to September 30, 2021, reaching a peak of 4.51. This indicates that the company had a significant amount of cash and cash equivalents relative to its short-term obligations during this period. However, the cash ratio then decreased gradually until March 31, 2023, which could suggest a reduction in liquidity compared to the previous period.

From March 31, 2023, to September 30, 2024, the cash ratio experienced a sharp decline, falling to as low as 0.55 by March 31, 2024, before increasing slightly by December 31, 2024. This significant drop in the cash ratio could raise concerns about the company's ability to meet its short-term financial obligations using its available cash reserves.

Overall, while the cash ratio of Globus Medical has shown fluctuations over the analyzed period, it is essential for investors and stakeholders to monitor the company's cash position closely to assess its liquidity and financial health.