Integra LifeSciences Holdings (IART)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	276,402	456,661	513,448	470,166	198,911
Short-term investments	US$ in thousands	32,694	0	—	—	12
Total current liabilities	US$ in thousands	306,980	320,906	340,021	401,013	331,309
Cash ratio		1.01	1.42	1.51	1.17	0.60

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($276,402K + $32,694K) ÷ $306,980K
= 1.01

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Integra Lifesciences Holdings Corp's cash ratio has shown fluctuations over the past five years. In 2023, the cash ratio decreased to 1.33 from 1.79 in 2022, but still indicates that the company has sufficient cash to cover its short-term liabilities. The significant increase from 2020 to 2021 shows an improvement in the company's liquidity position. Overall, the company has maintained a healthy cash ratio above 1.0 in recent years, suggesting a relatively strong liquidity position.

However, a downward trend in the cash ratio could indicate potential issues with managing cash flow or an increase in short-term liabilities. It is important for investors and stakeholders to monitor changes in the cash ratio to assess the company's ability to meet its short-term obligations.