Zimmer Biomet Holdings Inc (ZBH)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	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	1,363,900	1,150,800	1,247,100	1,225,300
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
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

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 some fluctuation over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory. A quick ratio of less than 1 suggests that a company may have difficulty meeting its short-term liabilities.

In Q4 2023, the quick ratio was 0.78, indicating that the company may have had challenges covering its short-term obligations with its most liquid assets. However, the quick ratio increased to 0.99 in Q3 2023, which reflected a stronger position in meeting short-term liabilities.

The quick ratio was relatively stable in Q2 2023 and Q1 2023 at 0.95 and 0.93 respectively, although still below 1. In Q4 2022 and Q3 2022, the quick ratio was 0.97 and 1.05 respectively, which showed fluctuations but remained above 1 in Q3 2022.

The quick ratio dropped to 0.89 in Q1 2022, which could indicate potential challenges in meeting short-term obligations with available liquid assets.

Overall, the trend in Zimmer Biomet's quick ratio over the past eight quarters has shown some variability, occasionally falling below 1. It would be important for the company to monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.