Merit Medical Systems Inc (MMSI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,108,470	529,084	482,212	429,707	454,538
Total current liabilities	US$ in thousands	203,564	220,645	236,280	185,004	181,656
Current ratio		5.45	2.40	2.04	2.32	2.50

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,108,470K ÷ $203,564K
= 5.45

The current ratio of Merit Medical Systems, Inc. has shown a significant improvement over the past five years. As of December 31, 2023, the company's current ratio stood at 5.45, reflecting a strong ability to cover its short-term liabilities with its current assets. This substantial increase compared to the ratios of 2.40 in 2022, 2.04 in 2021, 2.32 in 2020, and 2.50 in 2019 indicates that the company has enhanced its short-term liquidity position.

A current ratio above 1 typically indicates that a company can easily meet its short-term obligations. Merit Medical Systems, Inc.'s current ratio well above 1, reaching 5.45 in 2023, suggests that the company has a comfortable cushion of current assets that can be readily converted into cash to settle its current liabilities. This improvement in the current ratio indicates a strengthened financial position and effective management of working capital, which are positive signals for investors and creditors.