Teleflex Incorporated (TFX)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash 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
Receivables US$ in thousands 443,467 408,834 383,569 395,071 418,673
Total current liabilities US$ in thousands 606,745 581,492 680,119 540,027 563,055
Quick ratio 1.10 1.29 1.25 1.46 1.32

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($222,848K + $—K + $443,467K) ÷ $606,745K
= 1.10

The quick ratio of Teleflex Incorporated has exhibited some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

In 2023, the quick ratio decreased to 1.29 from 1.43 in 2022. This decline may suggest a slight decrease in Teleflex's ability to cover its short-term liabilities with its liquid assets.

Comparing the quick ratio to the previous years, Teleflex exhibited a higher quick ratio in 2020 at 1.68, indicating a stronger ability to meet short-term obligations with liquid assets. In 2021 and 2019, the quick ratio was 1.40 and 1.47 respectively, showing relatively stable liquidity positions over these years.

Overall, while the quick ratio of Teleflex in 2023 decreased compared to the previous year, it remains above 1, indicating that the company still has sufficient liquid assets to cover its short-term liabilities. Nonetheless, it may be advisable for the company to monitor its liquidity levels closely to ensure continued financial stability.


Peer comparison

Dec 31, 2023