Globus Medical (GMED)

Liquidity ratios

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
Current ratio 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 6.17 6.71 6.94 7.77
Quick ratio 2.74 2.69 7.48 6.07 6.02 6.09 5.92 4.55 4.35 5.96 4.96 4.58 4.76 5.61 4.27 4.24 4.25 4.58 4.72 5.80
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

Globus Medical Inc's liquidity ratios show a consistent trend of strong liquidity position over the quarters. The current ratio has remained above 4 in all quarters, indicating that the company has more than enough current assets to cover its short-term liabilities. The ratio peaked at 7.80 in Q2 2023, showing a significant increase in liquidity at that point.

The quick ratio, which excludes inventory from current assets, also demonstrates strong liquidity levels above 2 in all quarters. This ratio provides a more conservative measure of liquidity than the current ratio and indicates the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most stringent liquidity measure, has also been robust for Globus Medical Inc, consistently above 1 in all quarters. This signifies that the company holds sufficient cash and cash equivalents to cover its current liabilities without relying on other current assets.

Overall, Globus Medical Inc maintains a solid liquidity position as evidenced by its strong current, quick, and cash ratios. This indicates the company's ability to meet its short-term financial obligations without facing significant liquidity constraints.


Additional liquidity measure

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 conversion cycle days 644.48 992.75 469.15 449.81 441.38 434.80 415.65 406.13 391.22 395.84 396.39 414.00 422.57 430.74 437.28 423.41 423.70 410.38 398.38 335.70

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Globus Medical Inc's cash conversion cycle has fluctuated over the past eight quarters, ranging from 404.76 days in Q1 2022 to a peak of 992.24 days in Q3 2023.

A longer cash conversion cycle suggests that the company is taking more time to sell its inventory or collect revenue from its sales, which can tie up cash and impact liquidity. Conversely, a shorter cash conversion cycle indicates that the company is able to efficiently convert its investments into cash, potentially improving cash flows and working capital management.

It is worth noting that the significant increase in the cash conversion cycle in Q3 2023 compared to previous quarters warrants further investigation. Management should analyze the underlying factors contributing to this increase and take appropriate actions to optimize the company's working capital efficiency. Overall, monitoring the cash conversion cycle is important for assessing Globus Medical Inc's operational efficiency and cash flow management.