ICU Medical Inc (ICUI)

ICU Medical Inc's liquidity ratios show a strong position as of December 31, 2021, with a current ratio of 5.13, indicating that the company's current assets are more than five times its current liabilities. This suggests the company is well-equipped to meet its short-term obligations.

Additionally, the quick ratio of 2.83 as of December 31, 2021, reflects a more stringent measure of liquidity as it only considers the most liquid assets. This indicates that ICU Medical Inc has a solid ability to cover its short-term liabilities with its most liquid assets.

Looking at the cash ratio, which is also 2.83 as of December 31, 2021, it shows that the company has a strong ability to cover its current liabilities solely with its cash and cash equivalents, further highlighting its liquidity strength.

However, there is a slight decline in liquidity ratios from 2021 to 2024, with the current ratio decreasing to 2.59, and the quick ratio and cash ratio both decreasing to 0.55 as of December 31, 2024. This decline may indicate a moderate weakening in the company's ability to cover its short-term obligations using its current assets and liquid resources.

Overall, while ICU Medical Inc's liquidity ratios display a solid position as of December 31, 2021, there is a slight decrease in liquidity levels over the following years, which may warrant further monitoring to ensure the company maintains its ability to meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of ICU Medical Inc has fluctuated over the years based on the provided data.

As of December 31, 2020, the cash conversion cycle was 142.00 days. This indicates the average number of days it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

By December 31, 2021, the cash conversion cycle improved to 128.44 days, showing a more efficient management of working capital during that period.

However, by December 31, 2022, the cash conversion cycle increased to 160.56 days, suggesting a longer period to convert investments into cash.

The trend continued with a further increase in the cash conversion cycle to 170.42 days by December 31, 2023, indicating potential challenges in managing working capital effectively during that year.

Finally, the cash conversion cycle improved to 137.04 days by December 31, 2024, showing a more efficient conversion of investments into cash flow compared to the previous year.

In conclusion, ICU Medical Inc's cash conversion cycle has experienced fluctuations over the years, with varying levels of efficiency in managing working capital and converting investments into cash flow. It is important for the company to monitor and optimize its cash conversion cycle to ensure effective management of liquidity and working capital.