Intuitive Surgical Inc (ISRG)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,027,400	2,750,100	1,581,200	1,290,900	1,622,600
Short-term investments	US$ in thousands	1,985,900	2,473,100	2,541,000	2,940,000	3,548,900
Total current liabilities	US$ in thousands	1,745,300	1,658,700	1,422,100	1,149,800	965,200
Cash ratio		2.30	3.15	2.90	3.68	5.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,027,400K + $1,985,900K) ÷ $1,745,300K
= 2.30

The cash ratio for Intuitive Surgical Inc has decreased over the past five years, from 5.36 in December 2020 to 2.30 in December 2024. This indicates a declining ability to cover short-term liabilities with cash and cash equivalents alone. While the company's cash ratio remains above 1, suggesting it can cover its current liabilities, the downward trend may raise concerns about its liquidity position and ability to meet immediate obligations solely through its cash reserves. Further analysis of the company's overall liquidity and cash management strategies would be beneficial to understand the reasons behind the decreasing trend in the cash ratio.