Zimmer Biomet Holdings Inc (ZBH)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	415,800	375,700	378,100	802,100	617,900
Short-term investments	US$ in thousands	—	6,800	100,400	—	—
Receivables	US$ in thousands	1,442,400	1,381,500	1,404,900	1,452,700	1,363,900
Total current liabilities	US$ in thousands	2,857,400	2,358,200	3,467,900	2,556,900	3,441,500
Quick ratio		0.65	0.75	0.54	0.88	0.58

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($415,800K + $—K + $1,442,400K) ÷ $2,857,400K
= 0.65

The quick ratio of Zimmer Biomet Holdings Inc has shown fluctuations over the past five years. The ratio stood at 0.78 as of December 31, 2023, indicating that the company had $0.78 in liquid assets available to cover each $1 of its current liabilities.

Comparing this with the previous years, we can observe that the quick ratio was relatively higher at 0.97 on December 31, 2022, and 1.03 on December 31, 2020, suggesting a better short-term liquidity position during those periods. However, on December 31, 2021, and December 31, 2019, the quick ratio was lower at 0.72 and 0.68, respectively, indicating a less favorable liquidity position in those years.

Overall, while the current quick ratio of 0.78 suggests that Zimmer Biomet Holdings Inc may have slightly lower liquidity compared to the previous year, it is important to consider trends over multiple periods to assess the company's overall ability to meet its short-term obligations with its liquid assets.