LeMaitre Vascular Inc (LMAT)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 6.51 | 6.39 | 6.41 | 3.75 | 4.42 |
| Quick ratio | 4.36 | 4.13 | 4.11 | 1.85 | 2.36 |
| Cash ratio | 3.52 | 3.26 | 3.21 | 1.07 | 1.57 |
Lemaitre Vascular Inc has demonstrated strong liquidity ratios over the past five years, indicating its ability to meet short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with current assets, has consistently been above 6 for the last three years, reflecting a healthy liquidity position. This suggests that Lemaitre Vascular Inc has a comfortable buffer to meet its short-term obligations.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from the current assets. The company's quick ratio has also been robust, consistently above 4, indicating that Lemaitre Vascular Inc can meet its immediate short-term obligations without relying on selling inventory.
Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with available cash and cash equivalents, has shown a positive trend over the years. The cash ratio has consistently been above 1.5, indicating that Lemaitre Vascular Inc holds sufficient cash reserves to cover its short-term obligations without relying on liquidating other assets.
Overall, Lemaitre Vascular Inc's liquidity ratios demonstrate a strong financial position and efficient management of its short-term liquidity needs. Maintaining such strong liquidity ratios is essential for the company to sustain its operations, support growth opportunities, and weather any unexpected financial challenges in the future.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 158.48 | 164.15 | 167.82 | 197.08 | 176.23 |
The cash conversion cycle of Lemaitre Vascular Inc has shown fluctuations over the past five years. The cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In 2023, the cash conversion cycle increased to 345.86 days from 322.29 days in 2022. This indicates that the company took longer to convert its investments into cash during the most recent year.
Comparing 2023 to earlier years, the cycle was longer than in 2021 (310.00 days) and 2022 (322.29 days), but lower than the cycle in 2020 (355.10 days) and 2019 (364.32 days).
This suggests that the company has improved its efficiency in managing its working capital over the past year but still needs to focus on optimizing its cash conversion cycle to enhance liquidity and profitability.