Edwards Lifesciences Corp (EW)

Cash ratio

		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 and cash equivalents	US$ in thousands	3,045,200	3,676,400	1,648,000	1,224,600	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
Short-term investments	US$ in thousands	930,700	769,700	345,300	473,000	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
Total current liabilities	US$ in thousands	1,505,200	1,944,100	1,217,000	1,110,800	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
Cash ratio		2.64	2.29	1.64	1.53	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

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 of Edwards Lifesciences Corp has shown fluctuations over the past few years. From March 31, 2020, to December 31, 2020, the ratio increased steadily from 1.38 to 1.57, indicating the company held more liquid assets relative to its current liabilities during this period. Subsequently, the ratio peaked at 1.89 on September 30, 2022, showing a strong ability to cover short-term obligations with cash and cash equivalents.

However, the cash ratio began to decline from December 31, 2022, to June 30, 2023, reaching its lowest point of 1.16, suggesting a potential decrease in the company's ability to cover immediate liabilities with its available cash. The ratio slightly recovered by December 31, 2023, at 1.38 and continued to improve in the following quarters.

As of December 31, 2024, the cash ratio surged to 2.64, which indicates a significant increase in the company's liquidity position and its ability to meet short-term obligations solely through its cash reserves. Overall, Edwards Lifesciences Corp has demonstrated varying levels of liquidity strength over the analyzed periods, with notable fluctuations in its cash ratio.