Zimmer Biomet Holdings Inc (ZBH)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash US$ in thousands 525,500 569,000 420,100 393,000 415,800 292,100 319,800 330,200 375,700 545,400 386,400 435,800 378,100 919,600 1,042,400 724,300 802,100 967,300 713,400 2,433,600
Short-term investments US$ in thousands — — — — — — — — 6,800 22,800 41,100 — 100,400 — — — — — — —
Receivables US$ in thousands 1,480,700 1,481,500 1,418,000 1,446,400 1,442,400 1,340,700 1,367,300 1,380,900 1,381,500 1,278,500 1,282,100 1,254,200 1,404,900 1,392,000 1,420,400 1,380,200 1,452,700 1,340,700 1,064,500 1,039,100
Total current liabilities US$ in thousands 2,450,900 3,571,300 3,608,400 2,797,000 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
Quick ratio 0.82 0.57 0.51 0.66 0.65 0.79 0.76 0.73 0.75 0.80 0.69 0.63 0.54 0.79 0.84 1.01 0.88 1.02 0.82 0.92

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 exhibited fluctuations over the reporting periods provided. The ratio, which measures the company's ability to meet its short-term obligations using its most liquid assets, shows a general downward trend from September 2020 to March 2024, with some temporary increases in between.

As of December 31, 2024, the quick ratio stands at 0.82, indicating that for every dollar of current liabilities, the company has $0.82 in readily available current assets to cover those obligations. This suggests that Zimmer Biomet Holdings Inc may face challenges in meeting its short-term financial commitments.

It's notable that the quick ratio dipped to its lowest point of 0.51 on June 30, 2024, highlighting a potential liquidity strain during that period. However, the ratio has shown some improvement in the subsequent quarters, reaching 0.82 by December 31, 2024.

Overall, the trend in Zimmer Biomet Holdings Inc's quick ratio indicates a need for monitoring and potential improvements in managing its short-term liquidity position to ensure financial stability and meet obligations effectively.