Edwards Lifesciences Corp (EW)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 1,144,000 | 769,000 | 862,800 | 1,183,200 | 1,179,100 |
Short-term investments | US$ in thousands | 500,500 | 446,300 | 604,000 | 219,400 | 337,800 |
Total current liabilities | US$ in thousands | 1,195,400 | 1,022,400 | 1,032,300 | 893,900 | 902,400 |
Cash ratio | 1.38 | 1.19 | 1.42 | 1.57 | 1.68 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,144,000K
+ $500,500K)
÷ $1,195,400K
= 1.38
The cash ratio of Edwards Lifesciences Corp has shown a fluctuating trend over the past five years. The ratio was at its lowest point in 2022 at 1.49, indicating that the company had $1.49 in cash and cash equivalents for every $1 of current liabilities. However, the cash ratio increased to 1.70 in 2023, showing an improvement in the company's liquidity position.
Comparing the cash ratio to previous years, it is evident that Edwards Lifesciences Corp had a higher cash ratio in 2019 and 2020 (1.93 and 1.89, respectively), which suggests the company had stronger liquidity positions in those years compared to the more recent ones. The cash ratio dipped in 2021 to 1.73 but rebounded slightly in 2023.
Overall, while the cash ratio has fluctuated, it is generally above 1, indicating that the company has had sufficient cash and cash equivalents to cover its short-term liabilities in each of the years presented. The recent increase in the cash ratio from 2022 to 2023 is a positive sign for the company's liquidity position.
Peer comparison
Dec 31, 2023