Edwards Lifesciences Corp (EW)

Current 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
Total current assets	US$ in thousands	4,035,700	4,067,500	3,647,000	3,257,200	3,095,800	3,513,900	3,263,100	3,241,300	3,180,700	3,515,500	3,322,900	3,069,200	3,091,000	2,980,400	2,690,300	2,507,900	2,984,000	2,739,700	2,354,700	2,368,800
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
Current ratio		3.38	3.28	3.15	3.01	3.03	3.83	3.37	3.41	3.08	3.64	3.75	3.84	3.46	3.52	3.08	3.36	3.31	3.53	3.38	3.66

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 displayed some fluctuations over the past eight quarters. The current ratio measures the company's ability to meet its short-term financial obligations using its current assets, with higher ratios indicating stronger liquidity.

From the data provided, we observe that the current ratio has been above 3.0 in all quarters, indicating that the company has a healthy liquidity position. In the latest quarter (Q4 2023), the current ratio was at 3.38, showing a slight increase from the previous quarter's 3.28.

While a current ratio above 2.0 is generally considered acceptable, Edwards Lifesciences Corp has consistently maintained a current ratio well above this threshold, reflecting its strong ability to cover short-term obligations. However, it is important to monitor any downward trends in the current ratio over time, as sustained decreases may indicate potential liquidity challenges in the future.

Overall, based on the current ratio trend observed, Edwards Lifesciences Corp appears to have a solid liquidity position, which is essential for managing short-term financial obligations effectively.