Teleflex Incorporated (TFX)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	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	2.32	2.33	2.52	2.27
Quick ratio	1.10	2.35	1.30	0.55	1.29	1.34	1.22	1.33	1.22	1.57	1.47	1.43	1.43	1.55	2.03	2.11	1.28	1.23	1.39	1.24
Cash ratio	0.37	1.62	0.53	0.55	0.59	0.70	0.54	0.71	0.65	0.86	0.69	0.64	0.70	0.73	1.21	1.01	0.53	0.49	0.62	0.52

The liquidity ratios of Teleflex Incorporated indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has shown variability over the past eight quarters but generally remains above 2. This suggests that Teleflex has a comfortable cushion of current assets to cover its current liabilities.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Teleflex's quick ratio has fluctuated but has generally stayed above 1, indicating that the company can cover its current liabilities with its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also shown variability but generally remains below 1. This suggests that Teleflex may have limitations in meeting its short-term obligations solely with its cash reserves.

Overall, Teleflex's liquidity ratios demonstrate a strong ability to meet its short-term obligations, with the current and quick ratios indicating a healthy liquidity position. However, the decreasing trend in the cash ratio over the quarters may warrant further monitoring to ensure the company maintains sufficient cash reserves for unforeseen circumstances.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	138.13	138.75	140.19	84.24	126.36	118.91	118.90	115.04	109.79	114.17	119.71	126.86	127.80	133.10	125.36	128.59	122.20	120.56	116.43	113.24

The cash conversion cycle of Teleflex Incorporated has shown a fluctuating trend over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 190.23 days from the previous quarter's 189.06 days. This indicates that Teleflex took slightly longer to convert its investments in inventory and receivables into cash during this period.

Comparing Q4 2023 to the same quarter in the previous year, there has been an increase from 184.32 days to 190.23 days, suggesting a less efficient cash conversion process in the most recent quarter. However, when looking at the broader trend over the past two years, the cash conversion cycle has generally been increasing, with some fluctuations in between.

It is essential for Teleflex to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and efficient operations. By identifying and addressing bottlenecks in the working capital cycle, the company can strive to improve its financial performance and enhance overall liquidity management.