Edwards Lifesciences Corp (EW)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	3,045,200	1,144,000	769,000	862,800	1,183,200
Short-term investments	US$ in thousands	930,700	500,500	446,300	604,000	219,400
Total current liabilities	US$ in thousands	1,505,200	1,195,400	1,022,400	1,032,300	893,900
Cash ratio		2.64	1.38	1.19	1.42	1.57

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,045,200K + $930,700K) ÷ $1,505,200K
= 2.64

The cash ratio for Edwards Lifesciences Corp has shown a fluctuating trend over the past five years. Starting at 1.57 in December 31, 2020, the ratio decreased to 1.42 by the end of 2021, indicating a slightly lower ability to cover short-term liabilities with available cash and cash equivalents.

In December 31, 2022, the ratio further declined to 1.19, suggesting a potential liquidity concern as the company may have had less cash on hand relative to its current liabilities. However, the ratio improved in December 31, 2023, rising to 1.38, indicating a better ability to meet short-term obligations with cash resources.

Interestingly, the cash ratio significantly improved in December 31, 2024, surging to 2.64. This substantial increase reflects a strong liquidity position, with the company holding a higher proportion of cash or near-cash assets compared to its short-term liabilities.

Overall, while the cash ratio has fluctuated, it is essential to monitor the trend over time to ensure Edwards Lifesciences Corp maintains adequate liquidity to meet its financial obligations effectively and sustainably.