Globus Medical (GMED)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 467,292 | 150,466 | 193,069 | 239,397 | 195,474 |
| Short-term investments | US$ in thousands | 100,994 | 591,184 | 250,378 | 187,344 | 115,763 |
| Receivables | US$ in thousands | 504,870 | 217,308 | 165,651 | 148,100 | 162,424 |
| Total current liabilities | US$ in thousands | 392,347 | 159,204 | 140,164 | 120,792 | 111,403 |
| Quick ratio | 2.74 | 6.02 | 4.35 | 4.76 | 4.25 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($467,292K
+ $100,994K
+ $504,870K)
÷ $392,347K
= 2.74
The quick ratio of Globus Medical Inc has shown a declining trend over the past five years, from 4.41 in 2019 to 2.72 in 2023. This indicates a decrease in the company's ability to meet its short-term obligations with its most liquid assets. However, despite the decline, the quick ratio remains relatively high, suggesting that the company still maintains a strong liquidity position. Overall, the trend in the quick ratio may warrant further investigation into the company's liquidity management and efficiency in utilizing its current assets to meet short-term liabilities.
Peer comparison
Dec 31, 2023