Globus Medical (GMED)

Current 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
Total current assets	US$ in thousands	2,177,260	2,056,530	1,923,890	1,828,570	1,915,370	1,917,340	1,210,010	1,070,430	983,344	920,001	891,168	916,598	864,516	980,514	891,998	814,373	821,765	811,951	696,891	641,800
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
Current ratio		2.54	2.51	2.42	2.33	4.88	4.47	7.80	6.39	6.18	6.33	6.10	6.48	6.17	8.00	6.86	6.58	6.80	8.12	6.57	6.55

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,177,260K ÷ $855,913K
= 2.54

The current ratio of Globus Medical has shown fluctuating trends over the years based on the provided data. The ratio indicates the company's ability to meet its short-term obligations with its current assets.

1. Globus Medical's current ratio ranged from 6.55 to 8.12 in the first three quarters of 2020, indicating a strong ability to cover short-term liabilities with current assets.

2. The ratio remained relatively stable around 6.17 to 6.86 in 2021, reflecting continued healthy liquidity levels.

3. There was a slight decline in the current ratio in the first half of 2022, dropping to a range of 6.10 to 6.48, which may indicate a potential strain on short-term liquidity.

4. In the third quarter of 2022, the current ratio increased to 6.33, suggesting improved liquidity compared to the previous quarter.

5. The ratio surged to 7.80 in the second quarter of 2023, signaling a notable increase in the company's ability to cover short-term obligations with current assets.

6. However, a significant decrease in the current ratio to 4.47 by the third quarter of 2023 and 4.88 by the end of the year indicates a potential liquidity challenge.

7. The trend continued in 2024, with the current ratio further declining to 2.33 by March 31, 2024, and fluctuating within a narrow range of 2.42 to 2.54 in the subsequent quarters, suggesting deteriorating liquidity levels.

Overall, Globus Medical's current ratio has shown variability over the years, with periods of strong liquidity followed by declines, highlighting the importance of monitoring the company's short-term financial health and ability to meet its immediate obligations.