Zimmer Biomet Holdings Inc (ZBH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 525,500 | 415,800 | 375,700 | 378,100 | 802,100 |
| Short-term investments | US$ in thousands | — | 26,200 | 6,800 | 100,400 | — |
| Total current liabilities | US$ in thousands | 2,450,900 | 2,857,400 | 2,358,200 | 3,467,900 | 2,556,900 |
| Cash ratio | 0.21 | 0.15 | 0.16 | 0.14 | 0.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($525,500K
+ $—K)
÷ $2,450,900K
= 0.21
The cash ratio of Zimmer Biomet Holdings Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.31, indicating that the company had $0.31 in cash and cash equivalents for every $1 of current liabilities. However, this ratio decreased to 0.14 as of December 31, 2021, suggesting a lower liquidity position compared to the previous year.
Subsequently, the cash ratio improved slightly to 0.16 as of December 31, 2022, but then decreased to 0.15 by December 31, 2023. This trend indicates some variability in the company's ability to cover its short-term obligations with its available cash resources.
The most recent data point, as of December 31, 2024, shows a cash ratio of 0.21, which is a slight improvement from the previous year. This suggests that the company may have strengthened its liquidity position compared to the prior year.
Overall, the fluctuating cash ratio of Zimmer Biomet Holdings Inc implies variations in the company's ability to meet its short-term financial obligations with its existing cash holdings. It is essential for stakeholders to monitor these changes to assess the company's liquidity risk and financial stability accurately.
Peer comparison
Dec 31, 2024