Boston Scientific Corp (BSX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,514,000 | 5,760,000 | 6,317,000 | 6,694,000 | 4,699,000 |
| Total current liabilities | US$ in thousands | 4,933,000 | 3,803,000 | 4,274,000 | 3,681,000 | 4,866,000 |
| Current ratio | 1.32 | 1.51 | 1.48 | 1.82 | 0.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,514,000K ÷ $4,933,000K
= 1.32
The current ratio of Boston Scientific Corp. has been fluctuating over the past five years. The ratio was highest in 2020 at 1.82, indicating that the company had $1.82 in current assets to cover each dollar of current liabilities. This level suggests strong liquidity and ability to meet short-term obligations comfortably.
However, there was a noticeable decrease in the current ratio in 2021 to 1.48, followed by a further decline in 2023 to 1.32. These decreases could indicate potential challenges in managing current assets and liabilities efficiently.
It is important to note that the current ratio was significantly low in 2019 at 0.97, suggesting a potential liquidity issue where the company might have struggled to cover immediate obligations with its current assets.
Overall, while the current ratio of Boston Scientific Corp. has shown some variability, it is important for the company to aim for a consistent ratio above 1 to ensure it can meet short-term liabilities without facing liquidity constraints.
Peer comparison
Dec 31, 2023