Name: Cash Ratio

Definition: The cash ratio measures a company's ability to pay off all of its current liabilities immediately using only its most liquid assets: cash and cash equivalents. Unlike the current ratio and quick ratio, it excludes accounts receivable and inventory, making it the most conservative measure of liquidity.

Interpretation:
• In '2021', OFIX's cash ratio was 0.83, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Medical/Dental Instruments in '2021' stood at 2.38.
• In '2022', OFIX's cash ratio was 0.61, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2022' stood at 1.70. Industry average declined by 0.68 from previous year.
• In '2023', OFIX's cash ratio was 0.20, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2023' stood at 1.44. Industry average declined by 0.26 from previous year.
• In '2024', OFIX's cash ratio was 0.49, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2024' stood at 1.55. Industry average increased by 0.12 compared to previous year.
Overall, OFIX's cash ratio has been volatile but showed a downward trend over the past 4 years.

Formula: Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities

Good Range: Generally, a cash ratio between 0.2 and 0.5 is considered healthy for most industries.