Omnicell Inc (OMCL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 468,000 | 330,362 | 349,051 | 485,928 | 127,210 |
| Short-term investments | US$ in thousands | 11,867 | 11,486 | 10,665 | 10,246 | — |
| Total current liabilities | US$ in thousands | 367,792 | 428,446 | 876,158 | 276,423 | 236,996 |
| Cash ratio | 1.30 | 0.80 | 0.41 | 1.79 | 0.54 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($468,000K
+ $11,867K)
÷ $367,792K
= 1.30
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. Omnicell, Inc.'s cash ratio has fluctuated over the past five years, indicating variations in its liquidity position.
In 2023, the cash ratio improved significantly to 1.42, suggesting that the company had a higher level of cash and cash equivalents relative to its current liabilities. This may indicate that Omnicell had ample liquid assets to meet its short-term obligations easily.
The year 2022 saw a decrease in the cash ratio to 0.88, indicating a slight weakening of Omnicell's liquidity position compared to the previous year. This implies that the company may have had fewer liquid assets available to cover its short-term liabilities during that period.
Similarly, in 2021, the cash ratio was relatively low at 0.46, indicating that Omnicell had a lower level of cash and cash equivalents compared to its short-term liabilities. This could signal a potential liquidity challenge for the company during that year.
On the contrary, in 2020, the cash ratio spiked to 1.90, suggesting a significant improvement in Omnicell's liquidity position. The higher ratio implies that the company had a substantial amount of cash and cash equivalents to meet its short-term obligations comfortably.
Lastly, in 2019, the cash ratio was 0.66, indicating that Omnicell had a moderate level of liquid assets relative to its short-term liabilities during that period. This implies a reasonable, albeit not the strongest, liquidity position for the company at that time.
Overall, fluctuations in Omnicell, Inc.'s cash ratio over the past five years highlight changes in the company's liquidity levels and its ability to meet short-term financial obligations with available cash and cash equivalents.
Peer comparison
Dec 31, 2023