LeMaitre Vascular Inc (LMAT)

LeMaitre Vascular Inc's liquidity ratios have shown a positive trend over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has consistently increased from 3.75 in December 2020 to 13.14 in December 2024. This indicates that the company has significantly improved its liquidity position and is more capable of meeting its short-term financial commitments.

Similarly, the quick ratio, also known as the acid-test ratio, has shown a steady increase from 1.07 in December 2020 to 9.79 in December 2024. This indicates that the company's ability to meet its short-term liabilities with its most liquid assets (such as cash and marketable securities) has strengthened significantly over the years.

The cash ratio, which is a more stringent measure of liquidity as it only considers cash and cash equivalents in comparison to current liabilities, has followed the same positive trend, increasing from 1.07 in December 2020 to 9.79 in December 2024. This suggests that LeMaitre Vascular Inc has maintained a healthy level of cash reserves relative to its short-term obligations, which is a positive indicator of financial stability.

Overall, the liquidity ratios of LeMaitre Vascular Inc have shown consistent improvement over the years, indicating a strengthening financial position and a higher level of ability to meet its short-term financial obligations.

---

Additional liquidity measure

The cash conversion cycle of LeMaitre Vascular Inc decreased from 367.99 days as of December 31, 2020, to 317.26 days as of December 31, 2021. This improvement suggests the company was able to efficiently manage its cash flow cycle during that period. However, there was a slight increase in the cash conversion cycle to 323.30 days as of December 31, 2022, before a significant reduction to 287.52 days as of December 31, 2023. This substantial decrease indicates enhanced effectiveness in managing working capital and converting inventory into cash.

By December 31, 2024, the cash conversion cycle had increased to 343.64 days compared to the previous year. This rise may suggest a lengthening of the time it takes for the company to convert its investments in raw materials and other inputs into cash receipts from sales. Overall, LeMaitre Vascular Inc has shown variability in its cash conversion cycle over the years, with some improvements but also periods of increase. Monitoring this cycle closely is crucial for the company to maintain optimal cash flow efficiency and working capital management.