Merit Medical Systems Inc (MMSI)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 376,715 523,128 636,658 581,921 587,036 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
Short-term investments US$ in thousands — 2,149 254 1,150 1,503 2,320 — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 216,402 201,079 186,215 183,344 203,564 187,133 190,003 215,952 220,645 213,035 195,590 203,831 236,280 213,475 210,604 207,678 185,004 186,047 174,224 165,291
Cash ratio 1.74 2.61 3.42 3.18 2.89 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

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 fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.

The cash ratio ranged from 0.24 to 3.42 during this period. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its available cash resources alone.

There was an upward trend in the cash ratio from March 31, 2020, to December 31, 2024, with a notable spike in the ratio from December 31, 2023, to June 30, 2024. This indicates an improvement in the company's liquidity position and its ability to meet short-term obligations without relying on external financing.

However, it's essential to assess the reasons behind the significant increase in the cash ratio in the last quarter of 2024 to understand whether it was due to operational improvements, strategic decisions, or other factors that could impact the company's financial health in the long term.