Zimmer Biomet Holdings Inc (ZBH)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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 —
Receivables US$ in thousands 1,480,700 1,442,400 1,381,500 1,404,900 1,452,700
Total current liabilities US$ in thousands 2,450,900 2,857,400 2,358,200 3,467,900 2,556,900
Quick ratio 0.82 0.66 0.75 0.54 0.88

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($525,500K + $—K + $1,480,700K) ÷ $2,450,900K
= 0.82

The quick ratio of Zimmer Biomet Holdings Inc has shown fluctuations over the past five years. Starting at 0.88 in December 31, 2020, it decreased to 0.54 by December 31, 2021, indicating a potentially lower ability to meet short-term obligations with its most liquid assets. However, there was a slight improvement by December 31, 2022, with the quick ratio increasing to 0.75. Yet, by the end of December 31, 2023, the quick ratio slightly declined to 0.66. Finally, as of December 31, 2024, the quick ratio rose to 0.82, pointing towards better liquidity and a stronger ability to cover short-term liabilities with readily available assets. It is essential to monitor this ratio continuously to assess the company's short-term liquidity position effectively.