Edwards Lifesciences Corp (EW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,035,700 | 3,095,800 | 3,180,700 | 3,091,000 | 2,984,000 |
| Total current liabilities | US$ in thousands | 1,195,400 | 1,022,400 | 1,032,300 | 893,900 | 902,400 |
| Current ratio | 3.38 | 3.03 | 3.08 | 3.46 | 3.31 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,035,700K ÷ $1,195,400K
= 3.38
The current ratio of Edwards Lifesciences Corp has fluctuated over the past five years, ranging from a low of 3.03 in 2022 to a high of 3.46 in 2020. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to cover short-term liabilities.
In 2023, the current ratio improved to 3.38 from the previous year, suggesting a healthier liquidity position compared to 2022. However, it remains slightly below the 2020 level of 3.46, which was the highest in the past five years. This indicates that while the company has improved its short-term liquidity position compared to the prior year, there may still be opportunities to optimize the management of current assets and liabilities to enhance liquidity further.
Overall, Edwards Lifesciences Corp has maintained a relatively strong current ratio over the past five years, signaling a healthy liquidity position and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023