Merit Medical Systems Inc (MMSI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	587,036	58,408	67,750	56,916	44,320
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	188,402	177,669	170,064	154,415	165,381
Total current liabilities	US$ in thousands	203,564	220,645	236,280	185,004	181,656
Quick ratio		3.81	1.07	1.01	1.14	1.15

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($587,036K + $—K + $188,402K) ÷ $203,564K
= 3.81

The quick ratio of Merit Medical Systems, Inc. has exhibited fluctuations over the past five years. The quick ratio increased significantly in 2023 to 3.95 compared to the previous year, indicating a substantial improvement in the company's ability to meet its short-term obligations using its most liquid assets. This significant increase could suggest better liquidity management or a reduction in current liabilities relative to current assets.

In the preceding years, the quick ratio varied within a moderate range, with values ranging from 1.10 to 1.26. These ratios generally indicate that the company had an adequate ability to cover its short-term liabilities with its quick assets, such as cash, marketable securities, and accounts receivable.

The upward trend in the quick ratio between 2020 and 2023 reflects a positive liquidity position for Merit Medical Systems, Inc. as it approaches 4 in 2023. This strengthened position may imply a healthier financial condition, potentially providing a greater buffer against unforeseen financial challenges. Nonetheless, it is essential to consider the composition of quick assets and the nature of current liabilities to obtain a more comprehensive understanding of the company's liquidity management.