Edwards Lifesciences Corp (EW)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.18 | 3.46 | 3.71 | 3.75 | 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 |
| Quick 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 |
| 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 |
The current ratio of Edwards Lifesciences Corp has shown stability and a generally healthy trend over the periods analyzed, ranging between 3.03 and 4.18. This indicates that the company has a strong ability to meet its short-term obligations with its current assets.
On the other hand, the quick ratio, which excludes inventory from current assets, has been more variable, but generally above 1, reflecting the company's ability to cover its immediate liabilities without relying on selling inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also displayed a solid performance, staying above 1 throughout the periods examined. This suggests that Edwards Lifesciences Corp has ample cash reserves to meet its short-term obligations without relying on other current assets.
Overall, the liquidity ratios suggest that Edwards Lifesciences Corp maintains a healthy financial position in terms of the company's ability to meet its short-term financial obligations efficiently.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 320.63 | 309.60 | 269.21 | 307.19 | 309.03 | 294.21 | 302.12 | 300.49 | 295.78 | 244.34 | 226.99 | 212.52 | 212.38 | 217.93 | 230.06 | 252.76 | 271.00 | 263.67 | 248.00 | 210.60 |
The cash conversion cycle of Edwards Lifesciences Corp has shown fluctuations over the years, ranging from a low of 210.60 days to a high of 320.63 days. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
A shorter cash conversion cycle is typically preferred as it indicates that the company is able to efficiently manage its cash flow and working capital. On the other hand, a longer cash conversion cycle may signal inefficiencies in managing inventory, accounts receivable, and accounts payable.
In the case of Edwards Lifesciences Corp, the trend of the cash conversion cycle has been somewhat erratic, with periods of improvement followed by periods of deterioration. It is important for the company to closely monitor and manage its working capital components to ensure optimal efficiency in converting investments into cash. Additionally, the company may need to focus on enhancing inventory management, optimizing accounts receivable collection, and negotiating favorable payment terms with suppliers to potentially shorten the cash conversion cycle and improve overall liquidity.