Merit Medical Systems Inc (MMSI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	376,715	587,036	58,408	67,750	56,916
Short-term investments	US$ in thousands	—	2,100	—	—	—
Total current liabilities	US$ in thousands	216,402	203,564	220,645	236,280	185,004
Cash ratio		1.74	2.89	0.26	0.29	0.31

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($376,715K + $—K) ÷ $216,402K
= 1.74

The cash ratio of Merit Medical Systems Inc has shown some fluctuations over the past few years. As of December 31, 2020, the cash ratio was 0.31, indicating that the company had $0.31 in cash for every $1 of current liabilities. This ratio decreased slightly to 0.29 by December 31, 2021, and further dropped to 0.26 by December 31, 2022.

However, there was a significant increase in the cash ratio to 2.89 by December 31, 2023, suggesting that the company greatly improved its liquidity position. This improvement could be a result of increased cash holdings or a reduction in current liabilities.

Subsequently, the cash ratio decreased to 1.74 by December 31, 2024, but it still remained significantly higher than the ratios reported in the earlier years. Overall, the cash ratio trend indicates that Merit Medical Systems Inc has made positive strides in managing its liquidity position, particularly highlighted by the substantial increase in the cash ratio in 2023.