Mettler-Toledo International Inc (MTD)

Liquidity ratios

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 1.04 1.20 1.11 1.26 1.47
Quick ratio 0.62 0.70 0.65 0.82 1.03
Cash ratio 0.06 0.08 0.09 0.11 0.28

Mettler-Toledo International, Inc.'s liquidity ratios have fluctuated over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a declining trend from 1.47 in 2019 to 1.04 in 2023. While the current ratio above 1 indicates that the company's current assets exceed its current liabilities, the decreasing trend raises concerns about its short-term liquidity position.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has also been on a downward trend, decreasing from 1.11 in 2019 to 0.71 in 2023. A quick ratio below 1 signifies that the company may struggle to meet its short-term obligations without relying on inventory sales, which may not be as liquid.

Additionally, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown a consistent decline over the years. A cash ratio below 1 indicates that the company may not have sufficient cash on hand to cover its short-term obligations. Mettler-Toledo International, Inc.'s cash ratio decreased from 0.36 in 2019 to 0.15 in 2023.

Overall, the decreasing trend in all three liquidity ratios suggests that Mettler-Toledo International, Inc. may be experiencing challenges in maintaining sufficient liquidity to meet its short-term obligations. It is essential for the company to closely monitor its liquidity position and take appropriate measures to improve its short-term financial health.


Additional liquidity measure

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash conversion cycle days 105.36 108.89 96.98 104.87 94.24

The cash conversion cycle of Mettler-Toledo International, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 105.36 days from 108.89 days in 2022. This could indicate that the company is managing its working capital more efficiently, translating to quicker conversion of invested funds into cash.

Comparing to the previous years, the cash conversion cycle in 2023 was higher than that of 2021 when it was 96.98 days and 2019 when it was 94.24 days, suggesting a temporary deterioration in the working capital management efficiency. However, it was slightly lower than in 2020, when it stood at 104.87 days.

Overall, while there have been fluctuations in the cash conversion cycle of Mettler-Toledo International, Inc. over the past five years, the company's performance in 2023 indicates a moderate improvement in managing its working capital compared to the previous year.