Globus Medical (GMED)

Quick ratio

		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	US$ in thousands	467,292	279,620	306,452	217,685	150,466	134,223	150,772	229,789	193,069	361,876	268,783	184,848	239,397	250,607	165,554	166,742	195,474	166,090	117,790	129,976
Short-term investments	US$ in thousands	100,994	378,628	612,752	573,370	591,184	542,126	514,476	243,505	250,378	191,319	191,644	218,711	187,344	159,030	151,181	110,211	115,763	111,402	122,637	190,688
Receivables	US$ in thousands	504,870	495,852	241,942	225,825	217,308	208,504	198,536	169,831	165,651	176,744	185,163	162,675	148,100	151,365	136,074	138,683	162,424	157,576	156,954	140,609
Total current liabilities	US$ in thousands	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	111,403	94,921	84,184	79,492
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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better liquidity and a lower risk of financial distress.

The quick ratio for Globus Medical Inc has been fluctuating over the past eight quarters, ranging from 2.36 to 5.63. In Q4 2023, the quick ratio was 2.72, which suggests that the company had $2.72 in liquid assets available to cover each $1 of its current liabilities. This indicates a strong liquidity position, as a ratio above 1 signifies that the company can meet its short-term liabilities without relying heavily on inventory sales.

The quick ratio peaked in Q2 2023 at 5.63, signaling a significant increase in liquidity compared to the other quarters. This could be attributed to an increase in cash and marketable securities or a decrease in current liabilities during that period.

Overall, Globus Medical Inc has maintained a consistently healthy quick ratio above 2 over the past 8 quarters, indicating a strong ability to meet its short-term obligations using its liquid assets. This is a positive sign for investors and creditors, as it suggests that the company has a solid financial position and is capable of weathering short-term financial challenges.