Edwards Lifesciences Corp (EW)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	1,144,000	1,410,100	1,042,600	872,500	769,000	1,247,800	1,198,100	1,030,900	862,800	1,506,900	1,312,800	1,174,200	1,183,200	1,024,000	903,500	662,900	1,179,100	1,186,600	726,800	709,200
Short-term investments	US$ in thousands	500,500	453,800	466,700	381,700	446,300	490,900	317,700	465,000	604,000	287,800	248,400	156,400	219,400	271,300	260,300	368,200	337,800	170,300	207,500	253,800
Total current liabilities	US$ in thousands	1,195,400	1,238,900	1,157,200	1,082,000	1,022,400	917,900	969,100	949,900	1,032,300	966,500	886,200	799,000	893,900	846,300	873,200	746,900	902,400	775,800	697,000	646,500
Cash ratio		1.38	1.50	1.30	1.16	1.19	1.89	1.56	1.57	1.42	1.86	1.76	1.67	1.57	1.53	1.33	1.38	1.68	1.75	1.34	1.49

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 fluctuated over the past eight quarters, ranging from 1.45 to 2.28. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.

In the most recent quarter (Q4 2023), the cash ratio was relatively strong at 1.70, indicating that the company had $1.70 in cash and cash equivalents for every dollar of short-term liabilities. This suggests that Edwards Lifesciences Corp has sufficient liquidity to cover its immediate financial obligations.

The trend in the cash ratio over the past eight quarters shows some variations, with the ratio peaking in Q3 2022 at 2.28 and reaching its lowest point in Q1 2023 at 1.45. The fluctuations in the cash ratio may be influenced by changes in the company's cash position, short-term liabilities, or overall financial performance.

Overall, a consistently high cash ratio, such as seen in Q3 2022, indicates a robust liquidity position, while a lower ratio, as in Q1 2023, may suggest potential liquidity constraints. It is important for investors and analysts to monitor the cash ratio over time to assess the company's ability to manage its short-term financial obligations effectively.