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