Teleflex Incorporated (TFX)

Liquidity ratios

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
Current ratio 2.27 2.42 2.58 2.51 2.32 3.58 2.60 2.48 2.43 2.39 2.27 2.28 2.10 2.74 2.73 2.71 2.63 2.99 3.38 3.60
Quick 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
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

Teleflex Incorporated has demonstrated a consistently strong current ratio over the past few years, indicating a healthy liquidity position. The current ratio, which measures the company's ability to meet short-term liabilities with its current assets, has generally been above 2, indicating that Teleflex has more than enough current assets to cover its current liabilities.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, Teleflex's ratio has fluctuated over the years but generally stayed above 0.5. This suggests that the company has an adequate level of liquid assets to cover its short-term obligations without relying on selling inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also been relatively stable for Teleflex, showing the company's ability to cover its immediate liabilities with its available cash resources.

Overall, Teleflex's liquidity ratios indicate a healthy financial position, with a strong ability to meet its short-term obligations.

Additional liquidity measure

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 conversion cycle days 163.07 175.59 175.30 172.35 172.17 172.71 176.59 174.32 167.34 152.58 147.18 141.68 138.37 141.95 145.27 155.22 154.52 164.51 164.67 157.64

The cash conversion cycle of Teleflex Incorporated has exhibited fluctuating trends over the period under review, ranging from a high of 176.59 days on June 30, 2023, to a low of 138.37 days on December 31, 2021. This metric measures how long it takes for a company to convert its investments in inventory and accounts receivable into cash flow from sales, demonstrating its efficiency in managing working capital.

During the later part of the period, there was a general increasing trend in the cash conversion cycle, with values exceeding 170 days in the most recent quarters. This could indicate potential challenges in efficiently managing inventory and collections from customers, which may lead to potential liquidity constraints or increased financing costs.

Overall, Teleflex Incorporated should focus on strategies to improve its cash conversion cycle by optimizing inventory levels, shortening accounts receivable collection periods, and extending accounts payable payment terms. By effectively managing these components, the company can enhance its working capital efficiency and strengthen its overall financial position.