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.