ICU Medical Inc (ICUI)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	556,182	481,838	494,559	200,777	195,488
Quick ratio		0.55	0.53	0.43	2.83	2.10

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($308,566K + $0K + $—K) ÷ $556,182K
= 0.55

The quick ratio of ICU Medical Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the quick ratio was 2.10, indicating that the company had $2.10 in liquid assets available to cover each $1 of its current liabilities. This suggests a strong liquidity position at that time.

By December 31, 2021, the quick ratio improved further to 2.83, reflecting an increase in the company's ability to meet its short-term obligations with liquid assets. This indicates continued improvement in liquidity management.

However, a significant decline in the quick ratio was observed by December 31, 2022, where it dropped to 0.43. This steep decrease suggests a potential strain on the company's ability to cover its immediate liabilities with its current liquid assets.

Subsequent years saw a slight recovery in the quick ratio, with values of 0.53 as of December 31, 2023, and 0.55 by December 31, 2024. Although there was an improvement from the low point in 2022, the quick ratio still remains below the ideal threshold of 1.0, indicating that ICU Medical Inc may continue to face challenges in meeting its short-term obligations with its available liquid assets.

In conclusion, while ICU Medical Inc has shown fluctuations in its quick ratio over the years, the recent trend suggests a need for improved liquidity management to ensure the company's ability to meet its short-term financial obligations.