Boston Scientific Corp (BSX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 414,000 | 865,000 | 928,000 | 1,925,000 | 1,734,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,399,000 | 4,933,000 | 3,803,000 | 4,274,000 | 3,681,000 |
| Cash ratio | 0.06 | 0.18 | 0.24 | 0.45 | 0.47 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($414,000K
+ $—K)
÷ $6,399,000K
= 0.06
The cash ratio of Boston Scientific Corp has shown a declining trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio decreased from 0.47 in 2020 to 0.06 in 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has been weakening over time. A decreasing cash ratio may signal potential liquidity concerns for the company, as it suggests a lower ability to meet its immediate financial obligations solely from its cash reserves. It is important for Boston Scientific Corp to monitor and manage its liquidity position effectively to ensure it can maintain financial stability and meet its short-term financial commitments.
Peer comparison
Dec 31, 2024