Zimmer Biomet Holdings Inc (ZBH)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	415,800	292,100	319,800	330,200	375,700	545,400	386,400	435,800	378,100	919,600	1,042,400	724,300	802,100	967,300	713,400	2,433,600	617,900	512,500	403,100	586,800
Short-term investments	US$ in thousands	—	—	—	—	6,800	22,800	—	—	100,400	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,857,400	2,071,500	2,233,700	2,335,900	2,358,200	2,295,700	2,463,600	2,674,100	3,467,900	2,939,100	2,928,500	2,089,400	2,556,900	2,266,200	2,161,200	3,779,600	3,441,500	3,773,900	3,677,800	2,255,000
Cash ratio		0.15	0.14	0.14	0.14	0.16	0.25	0.16	0.16	0.14	0.31	0.36	0.35	0.31	0.43	0.33	0.64	0.18	0.14	0.11	0.26

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($415,800K + $—K) ÷ $2,857,400K
= 0.15

The cash ratio of Zimmer Biomet Holdings Inc has been fluctuating over the past eight quarters. It reached its lowest point of 0.27 in Q4 2023 and has shown a decreasing trend since Q4 2022. The cash ratio indicates the company's ability to cover its short-term obligations with its cash and cash equivalents.

A higher cash ratio is generally preferred as it suggests that the company has a sufficient amount of cash to cover its short-term liabilities. Zimmer Biomet's cash ratio has decreased from 0.49 in Q3 2022 to 0.27 in Q4 2023, reflecting a potential tightening of its liquidity position.

It is important for investors and stakeholders to monitor this trend closely as a declining cash ratio may indicate potential liquidity challenges or difficulties in meeting short-term obligations. Further analysis of the company's cash flow management and operational efficiency would provide valuable insights into its overall financial health and sustainability.