ICU Medical Inc (ICUI)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 308,566 254,222 208,784 552,827 396,097
Short-term investments US$ in thousands 0 501 4,224 14,420 14,687
Total current liabilities US$ in thousands 556,182 481,838 494,559 200,777 195,488
Cash ratio 0.55 0.53 0.43 2.83 2.10

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($308,566K + $0K) ÷ $556,182K
= 0.55

The cash ratio of ICU Medical Inc has shown some fluctuations over the years. It stood at a solid 2.10 as of December 31, 2020, indicating the company had $2.10 in cash for every $1 of current liabilities. The ratio improved to 2.83 by December 31, 2021, suggesting an even stronger liquidity position. However, there was a significant decline in the ratio to 0.43 by December 31, 2022, which may raise concerns about the company's ability to cover its short-term obligations with its cash on hand. The ratio slightly improved in the following years, reaching 0.53 by December 31, 2023, and 0.55 by December 31, 2024. It is essential for the company to monitor its cash levels closely to ensure it can meet its short-term financial commitments effectively.