Merit Medical Systems Inc (MMSI)

Liquidity ratios

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
Current ratio 5.45 3.13 3.13 2.58 2.40 2.35 2.52 2.35 2.04 2.17 2.14 2.11 2.32 2.34 2.56 2.80 2.50 2.88 2.42 2.36
Quick ratio 3.81 1.30 1.35 1.12 1.07 1.02 1.19 1.09 1.01 1.08 1.10 1.05 1.14 1.05 1.13 1.27 1.15 1.26 1.15 1.16
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

Based on the data provided for Merit Medical Systems, Inc., we observe the following trends in liquidity ratios over the past eight quarters:

1. Current Ratio:
- The current ratio has shown a fluctuating trend, with significant variations between quarters.
- The ratio has been generally above 2.0, indicating that the company has had more than enough current assets to cover its current liabilities.
- The ratio peaked in Q4 2023 at 5.45, reflecting a strong liquidity position compared to the other quarters.

2. Quick Ratio:
- The quick ratio has also displayed fluctuations but to a lesser extent than the current ratio.
- This ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity.
- The ratio has generally been above 1.0, indicating that the company can meet its short-term obligations without relying on selling inventory.

3. Cash Ratio:
- The cash ratio, which is the most stringent measure of liquidity, has shown variations across quarters.
- This ratio considers only cash and cash equivalents in relation to current liabilities.
- The cash ratio has generally been below 1.0, indicating that the company holds less cash compared to its current liabilities but still has improved over time.

Overall, the liquidity ratios of Merit Medical Systems, Inc. indicate that the company has maintained a relatively strong liquidity position, especially in the most recent quarter. The current and quick ratios suggest the company can meet its short-term obligations comfortably, while the cash ratio shows an overall increasing trend in the company's ability to cover its current liabilities with cash on hand. However, management should continue to monitor these ratios to ensure ongoing liquidity and financial stability.

Additional liquidity measure

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 conversion cycle days 134.08 141.27 140.57 136.88 126.96 119.71 119.01 118.58 119.60 113.60 108.90 115.50 114.12 116.89 121.51 121.95 124.93 123.86 127.27 126.35

The cash conversion cycle of Merit Medical Systems, Inc. has shown fluctuations over the past eight quarters. Generally, a higher number of days in the cash conversion cycle indicates that the company takes longer to convert its investments in inventory into cash receipts from sales.

In Q4 2023, the cash conversion cycle was 183.88 days, demonstrating an improvement compared to the previous quarter (Q3 2023) where it was 198.21 days. This indicates that the company was able to manage its working capital more efficiently in the most recent quarter.

Looking at the trend over the past eight quarters, there has been a slight increase in the cash conversion cycle from Q1 2022 to Q3 2023, where it peaked at 198.21 days. However, Q4 2023 saw a decline in the number of days in the cash conversion cycle, indicating potential improvements in managing inventory and collecting receivables.

Overall, monitoring the cash conversion cycle is crucial for Merit Medical Systems, Inc. to ensure effective management of working capital and optimize cash flow efficiency. It is important for the company to continue identifying areas for improvement in inventory management and accounts receivable collections to enhance its overall financial performance.