Teleflex Incorporated (TFX)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash and cash equivalents US$ in thousands 290,188 243,235 238,567 237,423 222,848 881,499 250,816 264,138 292,034 397,259 308,121 466,656 445,084 481,167 361,781 324,631 375,880 347,480 553,535 406,477
Short-term investments US$ in thousands — — 16,409 18,873 16,883 67,500 41,906 52,526 48,503 28,536 22,034 26,653 21,718 25,684 20,633 25,575 20,106 25,796 21,652 26,764
Total current liabilities US$ in thousands 649,360 618,753 556,751 571,014 606,745 585,422 555,449 575,712 581,492 610,943 610,446 656,200 680,119 562,210 526,848 508,053 540,027 475,247 456,615 402,300
Cash ratio 0.45 0.39 0.46 0.45 0.40 1.62 0.53 0.55 0.59 0.70 0.54 0.75 0.69 0.90 0.73 0.69 0.73 0.79 1.26 1.08

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($290,188K + $—K) ÷ $649,360K
= 0.45

The cash ratio of Teleflex Incorporated has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

The cash ratio started at 1.08 on March 31, 2020, indicating that the company had $1.08 in cash and cash equivalents for every dollar of current liabilities. The ratio increased to 1.26 by June 30, 2020, before decreasing to 0.79 by September 30, 2020. The declining trend continued with ratios of 0.73 on December 31, 2020, and 0.69 on March 31, 2021.

In the subsequent periods, the cash ratio fluctuated, reaching a low of 0.53 on June 30, 2023. However, there was a significant increase to 1.62 on September 30, 2023, indicating a substantial improvement in the company's cash position relative to its current liabilities. The ratio decreased to 0.39 on September 30, 2024, before stabilizing around 0.45 in the following quarters.

Overall, the cash ratio analysis suggests that Teleflex Incorporated experienced fluctuations in its ability to cover current liabilities with its cash and cash equivalents during the period under review. The company may need to monitor its cash position closely to ensure it maintains a healthy liquidity position to meet its short-term obligations effectively.