Teleflex Incorporated (TFX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 290,188 | 222,848 | 292,034 | 445,084 | 375,880 |
| Short-term investments | US$ in thousands | — | 16,883 | 48,503 | 21,718 | 20,106 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 649,360 | 606,745 | 581,492 | 680,119 | 540,027 |
| Quick ratio | 0.45 | 0.40 | 0.59 | 0.69 | 0.73 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($290,188K
+ $—K
+ $—K)
÷ $649,360K
= 0.45
The quick ratio of Teleflex Incorporated has shown a declining trend over the past five years. Starting at 0.73 in December 31, 2020, the ratio decreased to 0.69 in December 31, 2021, further dropping to 0.59 in December 31, 2022, and significantly declining to 0.40 by December 31, 2023. However, there was a slight improvement to 0.45 by December 31, 2024.
The decreasing trend in the quick ratio indicates that Teleflex may be facing challenges in meeting its short-term obligations with its most liquid assets. A quick ratio below 1 typically suggests that the company may have difficulty paying its current liabilities with its current assets, excluding inventory.
It is essential for Teleflex to closely monitor its liquidity position, as a low quick ratio could indicate potential liquidity issues and may require the company to take proactive measures to strengthen its liquidity position in the future.
Peer comparison
Dec 31, 2024