Dentsply Sirona Inc (XRAY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 334,000 | 365,000 | 339,000 | 438,000 | 405,000 |
| Short-term investments | US$ in thousands | — | 24,000 | 22,000 | 33,000 | 40,000 |
| Receivables | US$ in thousands | 756,000 | 632,000 | 750,000 | 673,000 | 782,000 |
| Total current liabilities | US$ in thousands | 1,425,000 | 1,170,000 | 1,261,000 | 1,372,000 | 995,000 |
| Quick ratio | 0.76 | 0.87 | 0.88 | 0.83 | 1.23 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($334,000K
+ $—K
+ $756,000K)
÷ $1,425,000K
= 0.76
The quick ratio of DENTSPLY Sirona Inc has shown fluctuations over the past five years. The company's quick ratio was 0.95 as of December 31, 2023, indicating that for every dollar of current liabilities, the company had $0.95 in highly liquid assets to cover those obligations.
Comparing this to the previous years, we can observe that the quick ratio was 1.08 in 2022, 1.06 in 2021, 1.01 in 2020, and 1.44 in 2019. The decreasing trend in the quick ratio from 2019 to 2023 suggests that the company may have increasingly struggled to meet its short-term obligations solely with its most liquid assets over the period.
A quick ratio below 1 may indicate potential liquidity issues, as the company may not have sufficient liquid assets to cover its current liabilities. However, it is important to consider industry standards and the company's specific circumstances when interpreting this ratio. Further analysis of DENTSPLY Sirona Inc's cash flow, working capital management, and overall financial health would provide more insights into its liquidity position.
Peer comparison
Dec 31, 2023