ICU Medical Inc (ICUI)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.53 2.63 2.57 2.62 2.50 2.45 2.45 2.38 5.13 5.46 5.30 5.16 4.71 4.86 2.89 2.80 3.55 3.70 3.58 3.86
Quick ratio 0.86 0.78 0.74 0.79 0.88 0.94 1.00 1.11 3.35 3.53 3.25 3.09 2.74 2.85 1.83 1.79 1.99 2.14 2.09 2.31
Cash ratio 0.53 0.43 0.41 0.49 0.43 0.50 0.55 0.70 2.83 2.90 2.60 2.42 2.10 1.96 1.28 1.23 1.18 1.32 1.21 1.31

ICU Medical, Inc.'s liquidity ratios have shown relatively stable trends over the past eight quarters. In terms of the current ratio, the company has consistently maintained a strong position with values ranging from 2.45 to 2.63. This indicates that ICU Medical has more than enough current assets to cover its current liabilities, reflecting a healthy liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained relatively stable for ICU Medical. The values have fluctuated between 0.97 and 1.17 over the past two years, indicating that the company has an adequate ability to meet its short-term obligations without relying on inventory.

Furthermore, the cash ratio for ICU Medical has been relatively steady, ranging from 0.63 to 0.87. This ratio highlights the company's ability to cover its current liabilities using only its most liquid assets (cash and cash equivalents). Although the cash ratio is lower than the current and quick ratios, it still indicates a reasonable level of liquidity for the company.

Overall, based on the current, quick, and cash ratios, ICU Medical, Inc. appears to have a solid liquidity position, with sufficient liquid assets to meet its short-term obligations consistently over the past two years.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 160.48 174.17 169.21 151.43 146.25 148.21 161.31 171.21 121.90 135.83 138.20 137.46 145.23 155.96 159.33 159.25 154.33 159.29 154.55 149.53

The cash conversion cycle of ICU Medical, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 160.93 days, indicating that it takes approximately 161 days for the company to convert its investments in inventory and other resources into cash flows from sales. This represented an improvement compared to the previous quarter (Q3 2023) where the cycle was 174.56 days.

Historically, the company experienced a peak in its cash conversion cycle in Q2 2022 with 172.15 days, followed by a gradual decline in the subsequent quarters. However, in Q1 2023, there was a notable increase in the cycle to 151.91 days, suggesting inefficiencies in managing inventory, receivables, and payables.

Overall, ICU Medical, Inc. should focus on optimizing its cash conversion cycle to ensure efficient utilization of resources and improved cash flow management. By streamlining inventory turnover, collecting receivables promptly, and extending payables strategically, the company can potentially enhance its overall financial performance and liquidity position.