Intuitive Surgical Inc (ISRG)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 4.07 | 4.76 | 4.40 | 5.08 | 6.86 |
| Quick ratio | 3.00 | 3.83 | 3.56 | 4.36 | 6.03 |
| Cash ratio | 2.30 | 3.15 | 2.90 | 3.68 | 5.36 |
The current ratio measures Intuitive Surgical Inc's ability to meet short-term obligations using its current assets. The company's current ratio has shown a decreasing trend over the years, declining from 6.86 in 2020 to 4.07 in 2024. Although the current ratio remains above 1, indicating sufficient short-term liquidity, the decreasing trend suggests a potential reduction in the company's ability to cover its current liabilities with current assets.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Intuitive Surgical Inc's quick ratio has also decreased from 6.03 in 2020 to 3.00 in 2024. This declining trend indicates a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets.
The cash ratio focuses solely on Intuitive Surgical Inc's ability to cover its current liabilities with cash and cash equivalents. The company's cash ratio has shown a similar decreasing trend, dropping from 5.36 in 2020 to 2.30 in 2024. This decreasing trend suggests a potential decline in the company's ability to settle its current obligations using cash on hand.
Overall, the liquidity ratios of Intuitive Surgical Inc indicate a gradual reduction in its short-term liquidity position over the years, which may raise concerns about the company's ability to efficiently meet its current financial obligations.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 146.79 | 140.18 | 124.30 | 100.25 | 120.50 |
The cash conversion cycle of Intuitive Surgical Inc has shown some fluctuations over the past five years.
As of December 31, 2020, the company's cash conversion cycle stood at 120.50 days, indicating that it took approximately 120.50 days for the company to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, there was some improvement in the cash conversion cycle, which decreased to 100.25 days, suggesting that the company was managing its working capital more efficiently and converting its assets into cash at a faster rate.
However, by December 31, 2022, the cash conversion cycle increased to 124.30 days, signifying that the company might have faced challenges in efficiently managing its working capital and converting assets into cash.
The trend continued as of December 31, 2023, with the cash conversion cycle further increasing to 140.18 days, indicating that the company might have been experiencing delays in the conversion of its assets into cash, potentially impacting its liquidity and working capital management.
The most recent data as of December 31, 2024, shows a cash conversion cycle of 146.79 days, which suggests that Intuitive Surgical Inc may need to focus on improving its efficiency in managing working capital to ensure a smoother cash flow and better liquidity position going forward.