Teleflex Incorporated (TFX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	222,848	292,034	445,084	375,880	301,083
Short-term investments	US$ in thousands	—	48,503	21,718	20,106	21,575
Total current liabilities	US$ in thousands	606,745	581,492	680,119	540,027	563,055
Cash ratio		0.37	0.59	0.69	0.73	0.57

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($222,848K + $—K) ÷ $606,745K
= 0.37

The cash ratio of Teleflex Incorporated has shown a declining trend over the past five years. The ratio decreased from 0.73 in 2019 to 0.56 in 2023. This indicates that the company has a lower ability to cover its current liabilities with its cash and cash equivalents in 2023 compared to previous years. A ratio of 0.56 means that for every dollar of current liabilities, Teleflex has $0.56 in cash and cash equivalents available to cover those obligations.

While a decreasing trend in the cash ratio may raise concerns about the company's liquidity position, it is essential to consider other liquidity ratios and factors to assess the overall financial health of Teleflex. It is recommended for stakeholders to delve deeper into the company's cash management practices and other liquidity metrics to gain a more comprehensive understanding of its liquidity management capabilities.