Zimmer Biomet Holdings Inc (ZBH)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.61 | 2.11 | 1.96 | 1.89 | 1.88 | 1.98 | 1.81 | 1.69 | 1.41 | 1.81 | 1.83 | 2.39 | 1.99 | 2.27 | 2.18 | 1.69 | 1.37 | 1.17 | 1.19 | 2.00 |
| Quick ratio | 0.65 | 0.79 | 0.76 | 0.73 | 0.75 | 0.80 | 0.68 | 0.63 | 0.54 | 0.79 | 0.84 | 1.01 | 0.88 | 1.02 | 0.82 | 0.92 | 0.58 | 0.44 | 0.45 | 0.80 |
| 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 |
Zimmer Biomet Holdings Inc's liquidity ratios can provide insight into the company's ability to meet its short-term obligations.
- The current ratio has shown some fluctuations over the past eight quarters, ranging from 1.61 to 2.11. While the current ratio has generally been above 1, indicating that the company has more current assets than current liabilities, the downward trend in recent quarters may suggest potential challenges in meeting short-term obligations.
- The quick ratio, which excludes inventory from current assets, has also fluctuated, with values ranging from 0.78 to 1.05 over the same period. The quick ratio is generally lower than the current ratio, indicating that the company may have some reliance on inventory to meet its short-term obligations.
- The cash ratio, representing the most conservative measure of liquidity, has also shown variability, ranging from 0.27 to 0.49. A cash ratio below 1 indicates that the company may not be able to cover its short-term liabilities using only cash and cash equivalents.
Overall, Zimmer Biomet Holdings Inc's liquidity ratios suggest that while the company generally has sufficient current assets to cover its current liabilities, there may be some fluctuations and potential challenges in meeting short-term obligations, especially when considering the company's ability to pay off obligations without relying on inventory or other current assets. Monitoring these ratios over time can provide valuable insights into the company's liquidity position.
Additional liquidity measure
| 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 conversion cycle | days | 196.10 | 188.35 | 186.65 | 184.23 | 183.44 | 174.63 | 169.40 | 162.09 | 167.94 | 185.53 | 186.37 | 198.18 | 188.35 | 192.98 | 177.24 | 159.87 | 179.64 | 184.55 | 190.02 | 188.75 |
The cash conversion cycle of Zimmer Biomet Holdings Inc has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 417.07 days compared to the previous quarter, Q3 2023, where it was 421.34 days. However, when compared to Q1 2023, the cycle has shown an overall increasing trend.
Looking back to Q4 2022, the cycle was 396.74 days, indicating a gradual increase over the past year. The longest cash conversion cycle was observed in Q3 2023 at 421.34 days, while the shortest cycle was in Q1 2022 at 344.04 days.
Overall, the company has experienced an increasing trend in its cash conversion cycle over the past eight quarters, suggesting potential inefficiencies in managing its cash, inventory, and receivables. It is important for Zimmer Biomet Holdings Inc to closely monitor and improve its cash conversion cycle to enhance its liquidity and operational efficiency in the future.