Intuitive Surgical Inc (ISRG)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,750,100	1,581,200	1,290,900	1,622,600	1,167,600
Short-term investments	US$ in thousands	2,473,100	2,541,000	2,940,000	3,548,900	2,054,100
Total current liabilities	US$ in thousands	1,658,700	1,422,100	1,149,800	965,200	1,030,200
Cash ratio		3.15	2.90	3.68	5.36	3.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,750,100K + $2,473,100K) ÷ $1,658,700K
= 3.15

The cash ratio of Intuitive Surgical Inc over the past five years has displayed fluctuations. The company's cash ratio was 3.34 at the end of 2023, indicating that for every dollar of current liabilities, the company had $3.34 in cash or cash equivalents available to cover immediate obligations. This ratio was slightly higher than the previous year, showing improved liquidity.

In 2022, the cash ratio was 3.11, lower than 2021's ratio of 3.89, suggesting a decline in the company's ability to cover short-term liabilities with cash on hand. The significant drop in the cash ratio in 2020 to 5.57 indicated a substantial increase in the company's cash reserves relative to its current liabilities.

The cash ratio reverted to a level close to the 2019 figure at 3.32 by the end of 2019. Overall, the trend of the cash ratio for Intuitive Surgical Inc fluctuated over the past five years, reflecting variations in the company's liquidity position and its ability to meet short-term obligations without relying on external financing.