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.
Peer comparison
Dec 31, 2023