Integra LifeSciences Holdings (IART)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	246,375	276,402	456,661	513,448	470,166
Short-term investments	US$ in thousands	27,192	32,694	0	—	—
Receivables	US$ in thousands	272,370	259,327	263,465	231,831	225,532
Total current liabilities	US$ in thousands	922,126	306,980	320,906	340,021	401,013
Quick ratio		0.59	1.85	2.24	2.19	1.73

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($246,375K + $27,192K + $272,370K) ÷ $922,126K
= 0.59

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided for Integra LifeSciences Holdings, we observe fluctuations in the quick ratio over the years.

In December 2020, the quick ratio was 1.73, indicating that the company had $1.73 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively healthy liquidity position at that time.

By December 2021, the quick ratio improved to 2.19, indicating an increase in the company's ability to meet short-term obligations with liquid assets. This improvement is a positive sign, showing potential strength in managing short-term liquidity requirements.

Further growth was seen by December 2022, where the quick ratio reached 2.24, reflecting a continued enhancement in the company's liquidity position. A quick ratio above 1 typically indicates that a company can cover its current liabilities with its quick assets, which are assets that can be converted to cash quickly.

However, in December 2023, the quick ratio slightly dropped to 1.85, although it still remained above the threshold of 1. This reduction may suggest a slight decrease in liquidity, but the company's ability to meet short-term obligations with liquid assets remains adequate.

The most notable change occurred by December 2024, where the quick ratio decreased significantly to 0.59. This suggests a considerable decline in the company's ability to cover short-term liabilities with its most liquid assets. A quick ratio below 1 may indicate potential liquidity issues, as the company may struggle to meet its short-term obligations from current liquid assets alone.

In conclusion, while Integra LifeSciences Holdings showcased a strong liquidity position in the initial years based on the quick ratio, there was a concerning decline by the end of the period analyzed. It would be essential for the company to closely monitor and potentially improve its liquidity management strategies to ensure its ability to meet short-term obligations in the future.