Globus Medical (GMED)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,915,370	983,344	864,516	821,765	687,468
Total current liabilities	US$ in thousands	392,347	159,204	140,164	120,792	111,403
Current ratio		4.88	6.18	6.17	6.80	6.17

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,915,370K ÷ $392,347K
= 4.88

The current ratio of Globus Medical Inc has shown a declining trend over the past five years, starting at 6.17 in 2019 and dropping to 4.88 by the end of 2023. This indicates a decrease in the company's ability to cover its short-term liabilities with its current assets over this period. Despite the decline, Globus Medical Inc continues to maintain a current ratio above 1, signaling that the company is able to meet its short-term obligations. However, the decreasing trend may raise concerns about the company's liquidity position and ability to convert current assets into cash to meet its short-term obligations efficiently. Further analysis of the company's asset management practices and potential liquidity risks may be warranted to understand the factors contributing to this trend.