Integra LifeSciences Holdings (IART)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 3.45 | 3.62 | 3.39 | 3.09 | 2.59 |
| Quick ratio | 1.85 | 2.24 | 2.19 | 1.73 | 1.43 |
| Cash ratio | 1.01 | 1.42 | 1.51 | 1.17 | 0.60 |
Integra Lifesciences Holdings Corp's liquidity ratios indicate a strong financial position over the past five years. The current ratio has generally been above 3, ranging from 3.09 in 2020 to 3.62 in 2022, demonstrating the company's ability to cover its short-term obligations with its current assets.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also reflects a healthy position. Integra's quick ratio has consistently been above 1, ranging from 1.64 in 2019 to 2.61 in 2022, indicating that the company can meet its short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most stringent liquidity measure as it considers only cash and cash equivalents, shows a positive trend. Integra's cash ratio has improved over the years, from 0.81 in 2019 to 1.79 in 2022, highlighting the company's increasing ability to cover its current liabilities solely with its cash resources.
Overall, the liquidity ratios of Integra Lifesciences Holdings Corp indicate a solid financial position with a strong ability to meet its short-term obligations, manage working capital efficiently, and withstand potential financial challenges.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 138.55 | 124.62 | 123.01 | 136.56 | 126.38 |
The cash conversion cycle of Integra Lifesciences Holdings Corp has fluctuated over the past five years, from a low of 197.41 days in 2019 to a high of 239.07 days in 2020. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates more efficient management of working capital and quicker conversion of investments into cash.
In the most recent year, the cash conversion cycle increased to 226.60 days compared to the prior year, suggesting potential challenges in managing working capital efficiently or potential delays in the collection of receivables. This could lead to increased reliance on external financing or reduced profitability due to higher carrying costs of inventory or longer collection periods.
Overall, Integra Lifesciences Holdings Corp should focus on streamlining its operations to reduce the cash conversion cycle, improve working capital management, and enhance cash flow generation to ensure sustainable financial health and operational efficiency.