Boston Scientific Corp (BSX)

Liquidity ratios

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
Current ratio 1.08 1.48 1.61 1.66 1.32 1.42 1.29 1.40 1.51 1.45 1.31 1.18 1.48 1.55 1.66 1.80 1.82 1.87 1.87 1.21
Quick ratio 0.06 0.44 0.54 0.83 0.18 0.21 0.09 0.14 0.25 0.10 0.07 0.08 0.45 0.48 0.66 0.59 0.47 0.61 0.55 0.09
Cash ratio 0.06 0.44 0.54 0.83 0.18 0.21 0.09 0.14 0.25 0.10 0.07 0.08 0.45 0.48 0.66 0.59 0.47 0.61 0.55 0.09

Boston Scientific Corp's current ratio has shown fluctuations over the years but generally remained above 1, which indicates the company's ability to meet its short-term obligations using its current assets. The current ratio was at its lowest at 1.08 at the end of December 2024 and peaked at 1.87 in June 2020 and September 2020. The downward trend in the current ratio from March 2024 to September 2024 could indicate potential challenges in managing short-term debt obligations.

In contrast, the quick ratio, which excludes inventory from current assets, also fluctuated but remained relatively low throughout the period. The quick ratio was highest at 0.83 in March 2024, indicating the company's ability to cover its current liabilities without relying on inventory. However, the quick ratio dropped significantly to 0.06 at the end of December 2024, suggesting a potential liquidity risk.

The cash ratio, reflecting the company's ability to cover its current liabilities with cash and cash equivalents, follows a similar pattern to the quick ratio. It ranged from 0.06 to 0.83 over the period, with a notable decrease at the end of December 2024. This decline in the cash ratio may raise concerns about the company's ability to pay off its short-term obligations with available cash resources.

Overall, while Boston Scientific Corp's current ratio indicates a reasonable ability to meet short-term obligations, the lower quick ratio and cash ratio towards the end of the period raise some liquidity concerns. It may be prudent for the company to carefully manage its short-term assets and liabilities to ensure it can meet its financial obligations effectively.

See also:

Boston Scientific Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 185.74 193.13 190.27 205.99 207.52 206.66 199.14 183.57 170.24 164.76 164.60 165.87 156.33 154.34 138.89 142.65 140.41 159.62 168.86 182.67

The cash conversion cycle of Boston Scientific Corp has exhibited fluctuations over the analyzed period. The cycle represents the time it takes for the company to convert its investments in inventory into cash flows from sales.

From March 31, 2020 to December 31, 2020, the company managed to reduce its cash conversion cycle from 182.67 days to 140.41 days, indicating an improvement in efficiency. However, the cycle increased to 207.52 days by December 31, 2023, suggesting potential challenges in managing inventory and collecting receivables.

Thereafter, the company made progress in optimizing its cash conversion cycle by decreasing it to 185.74 days by December 31, 2024. Although the cycle remains higher compared to previous periods, the recent trend signals management efforts to enhance operational efficiencies.

It is crucial for Boston Scientific Corp to continue monitoring and optimizing its cash conversion cycle to enhance working capital management and overall financial performance. Maintaining a healthy balance between inventory management, accounts receivable, and accounts payable will be essential for sustainable growth and profitability.