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.