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


See also:

Edwards Lifesciences Corp Cash Ratio