Integer Holdings Corp (ITGR)

Integer Holdings Corp has shown a generally strong liquidity position based on its liquidity ratios over the past five years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a consistent upward trend from 2.64 in 2020 to 2.95 in 2024. This indicates that Integer Holdings Corp has a satisfactory level of current assets to meet its short-term obligations.

However, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has been relatively low and stable at around 0.11 over the same period. This suggests that the company may face challenges in meeting its immediate short-term obligations without relying on inventory.

The cash ratio, which specifically looks at the company's ability to cover its current liabilities with its cash and cash equivalents, has also been in line with the quick ratio at around 0.11, except for a slight improvement to 0.20 in 2024. This indicates that Integer Holdings Corp may have limited cash on hand compared to its current liabilities.

Overall, while the current ratio reflects a healthy liquidity position, the low quick and cash ratios suggest that Integer Holdings Corp may need to carefully manage its short-term liquidity needs, especially if its inventory cannot be easily converted into cash.

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Additional liquidity measure

The cash conversion cycle of Integer Holdings Corp has shown some fluctuations over the past five years.

At the end of 2020, the cash conversion cycle was 69.19 days, indicating the company takes approximately 69 days to convert its investments in inventory and accounts receivable into cash inflows.

By the end of 2021, there was a slight improvement as the cash conversion cycle decreased to 64.28 days. This suggests that the company managed to shorten the time needed to convert its working capital into cash.

In 2022, there was a noticeable increase in the cash conversion cycle to 74.92 days, indicating that Integer Holdings Corp took longer to convert its resources into cash compared to the previous year.

Although there was a slight decrease in the cash conversion cycle in 2023 to 74.25 days, it remained relatively high compared to the performance in 2021.

At the end of 2024, the cash conversion cycle slightly improved to 71.73 days, but it still indicates that the company continues to face challenges in efficiently managing its working capital.

Overall, Integer Holdings Corp's cash conversion cycle has shown fluctuations over the years, suggesting the need for the company to focus on optimizing its inventory and accounts receivable management to improve its cash flow efficiency.