Edwards Lifesciences Corp (EW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,045,200 | 1,144,000 | 769,000 | 862,800 | 1,183,200 |
| Short-term investments | US$ in thousands | 930,700 | 500,500 | 446,300 | 604,000 | 219,400 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,505,200 | 1,195,400 | 1,022,400 | 1,032,300 | 893,900 |
| Quick ratio | 2.64 | 1.38 | 1.19 | 1.42 | 1.57 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,045,200K
+ $930,700K
+ $—K)
÷ $1,505,200K
= 2.64
The quick ratio of Edwards Lifesciences Corp has shown fluctuation over the past five years, moving from 1.57 at the end of 2020 to 1.42 at the end of 2021, then decreasing further to 1.19 by the end of 2022. However, there was a notable improvement in the quick ratio to 1.38 by the end of 2023, followed by a significant increase to 2.64 by the end of 2024.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations. The decreasing trend from 2020 to 2022 may have raised concerns about the company's ability to meet its short-term liabilities. However, the rebound in the quick ratio in 2023 and the substantial improvement in 2024 suggest that Edwards Lifesciences Corp has strengthened its liquidity position, indicating improved financial health and a better ability to cover immediate financial obligations.
Peer comparison
Dec 31, 2024