Edwards Lifesciences Corp (EW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,285,400 | 4,035,700 | 3,095,800 | 3,180,700 | 3,091,000 |
| Total current liabilities | US$ in thousands | 1,505,200 | 1,195,400 | 1,022,400 | 1,032,300 | 893,900 |
| Current ratio | 4.18 | 3.38 | 3.03 | 3.08 | 3.46 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,285,400K ÷ $1,505,200K
= 4.18
The current ratio of Edwards Lifesciences Corp has shown a relatively stable trend over the past five years, ranging from 3.03 to 4.18. This indicates that the company's current assets have consistently exceeded its current liabilities by a significant margin, reflecting strong liquidity and the ability to meet its short-term obligations.
A current ratio above 1.0 is generally considered healthy, and Edwards Lifesciences Corp's ratios well above this threshold suggest a strong financial position and efficient management of working capital. The increase in the current ratio from 3.03 in 2022 to 4.18 in 2024 indicates an improvement in liquidity, potentially driven by increased cash reserves or reduced short-term debt.
Overall, the current ratio analysis suggests that Edwards Lifesciences Corp has a robust liquidity position, which bodes well for its ability to navigate short-term financial challenges and capitalize on future opportunities.
Peer comparison
Dec 31, 2024