Intuitive Surgical Inc (ISRG)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	2,027,400	2,413,300	3,036,700	2,839,500	2,750,100	3,602,000	3,435,400	2,143,000	1,581,200	1,538,000	1,536,100	1,103,100	1,290,900	1,346,700	1,615,500	1,401,800	1,622,600	1,370,600	2,035,600	1,223,800
Short-term investments	US$ in thousands	1,985,900	1,818,400	1,720,500	1,960,600	2,473,100	2,873,700	2,363,800	2,549,200	2,541,000	2,781,000	2,909,900	2,892,200	2,940,000	2,785,300	2,823,700	3,155,700	3,548,900	3,413,500	2,452,700	2,029,600
Total current liabilities	US$ in thousands	1,745,300	1,676,800	1,487,500	1,375,100	1,658,700	1,676,400	1,538,400	1,307,400	1,422,100	1,233,400	1,175,000	1,112,200	1,149,800	1,027,300	1,004,600	904,600	965,200	894,700	924,800	945,900
Cash ratio		2.30	2.52	3.20	3.49	3.15	3.86	3.77	3.59	2.90	3.50	3.78	3.59	3.68	4.02	4.42	5.04	5.36	5.35	4.85	3.44

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 of Intuitive Surgical Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio started at 3.44 on March 31, 2020, and gradually increased to a peak of 5.36 on December 31, 2020. This indicated that the company had $5.36 in cash and cash equivalents for every $1 of current liabilities at the end of 2020.

However, after reaching its peak in 2020, the cash ratio began to decline. As of December 31, 2024, the cash ratio had decreased to 2.30. This downward trend suggests that the company's liquidity position weakened over this period, as it had lower levels of cash and cash equivalents relative to its current liabilities.

It is important for stakeholders to monitor the cash ratio to assess the company's ability to meet its short-term obligations using its liquid assets. A decreasing trend in the cash ratio may indicate potential liquidity challenges that could affect the company's financial stability and ability to manage its short-term obligations effectively.