Merit Medical Systems Inc (MMSI)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	587,036	58,673	72,084	57,945	58,408	51,481	63,003	53,875	67,750	68,904	69,672	58,519	56,916	44,551	49,702	50,080	44,320	37,315	35,182	49,522
Short-term investments	US$ in thousands	—	2,320	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	203,564	187,133	190,003	215,952	220,645	213,035	195,590	203,831	236,280	213,475	210,604	207,678	185,004	186,047	174,224	165,291	181,656	153,213	176,551	178,459
Cash ratio		2.88	0.33	0.38	0.27	0.26	0.24	0.32	0.26	0.29	0.32	0.33	0.28	0.31	0.24	0.29	0.30	0.24	0.24	0.20	0.28

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($587,036K + $—K) ÷ $203,564K
= 2.88

The cash ratio of Merit Medical Systems, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the cash ratio improved significantly to 3.02, indicating that the company had $3.02 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to cover short-term obligations solely with cash reserves.

Prior to Q4 2023, there were fluctuations in the cash ratio, with relatively lower levels ranging from 0.38 to 0.53. The cash ratio in Q3 2023 was particularly low at 0.48, indicating a limited ability to cover short-term liabilities with cash on hand.

Overall, the upward trend in the cash ratio from previous quarters to Q4 2023 signifies an improvement in Merit Medical Systems, Inc.'s liquidity position. However, it is essential to monitor future quarters to ensure the sustained ability of the company to meet its short-term obligations using cash reserves.