Edwards Lifesciences Corp (EW)

Quick 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
Cash	US$ in thousands	1,144,000	1,410,100	1,042,600	872,500	769,000	1,247,800	1,198,100	1,030,900	862,800	1,506,900	1,312,800	1,174,200	1,183,200	1,024,000	903,500	662,900	1,179,100	1,186,600	726,800	709,200
Short-term investments	US$ in thousands	500,500	453,800	466,700	381,700	446,300	490,900	317,700	465,000	604,000	287,800	248,400	156,400	219,400	271,300	260,300	368,200	337,800	170,300	207,500	253,800
Receivables	US$ in thousands	775,100	739,800	754,400	717,700	643,000	618,100	636,400	636,300	582,200	600,600	640,500	586,600	514,600	549,700	-9,300	-9,000	543,600	-8,800	-8,800	-8,600
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
Quick ratio		2.02	2.10	1.96	1.82	1.82	2.57	2.22	2.24	1.98	2.48	2.48	2.40	2.14	2.18	1.32	1.37	2.28	1.74	1.33	1.48

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,144,000K + $500,500K + $775,100K) ÷ $1,195,400K
= 2.02

The quick ratio of Edwards Lifesciences Corp has shown some fluctuations over the last eight quarters. The quick ratio, which measures the company's ability to meet its short-term liabilities using its most liquid assets, has generally been above 2, indicating a strong ability to cover short-term obligations with liquid assets.

In Q4 2023, the quick ratio was 2.40, slightly lower than the previous quarter at 2.45. While the ratio remains above 2, showing a healthy liquidity position, the slight decrease may warrant monitoring to ensure the company maintains sufficient liquidity to meet its short-term obligations.

The quick ratio peaked at 3.00 in Q3 2022, indicating exceptionally strong liquidity at that point. However, it has since trended downward but has generally remained above 2, which is considered a good benchmark for most companies.

Overall, Edwards Lifesciences Corp's quick ratio suggests a solid ability to cover short-term liabilities with liquid assets, but management should continue to monitor and manage liquidity effectively to ensure the company's financial health.