Intuitive Surgical Inc (ISRG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.76 | 5.31 | 5.22 | 5.26 | 4.40 | 5.10 | 5.36 | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | 6.86 | 7.04 | 6.38 | 4.96 | 4.53 | 4.64 | 5.04 | 5.44 |
| Quick ratio | 3.83 | 4.44 | 4.36 | 4.30 | 3.56 | 4.19 | 4.50 | 4.41 | 4.36 | 4.70 | 5.12 | 5.76 | 6.03 | 6.01 | 5.40 | 4.00 | 3.75 | 3.80 | 4.15 | 4.53 |
| Cash ratio | 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 | 3.13 | 3.11 | 3.37 | 3.79 |
Intuitive Surgical Inc has consistently demonstrated strong liquidity ratios over the past eight quarters. The current ratio has remained above 4 for all quarters, indicating that the company has more than enough current assets to cover its short-term liabilities. With a current ratio averaging around 5, Intuitive Surgical has a comfortable buffer to meet its obligations.
Similarly, the quick ratio, which excludes inventory from current assets, paints a positive picture of the company's liquidity position. Intuitive Surgical's quick ratio has been consistently above 4, highlighting its ability to cover immediate liabilities without relying on selling inventory.
The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has also shown strength. Intuitive Surgical's cash ratio has been above 3 for all quarters, indicating that the company has a healthy level of cash reserves relative to its short-term obligations.
Overall, Intuitive Surgical Inc's liquidity ratios suggest that the company is in a strong financial position with ample liquidity to support its operations and growth initiatives.
See also:
Intuitive Surgical Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 140.18 | 130.73 | 118.07 | 121.32 | 124.30 | 115.92 | 109.09 | 110.41 | 100.82 | 117.66 | 123.21 | 135.89 | 147.76 | 148.63 | 141.87 | 133.10 | 145.79 | 121.35 | 117.53 | 114.68 |
The trend of Intuitive Surgical Inc's cash conversion cycle over the past eight quarters indicates a fluctuating pattern. In Q4 2023, the cash conversion cycle increased to 215.19 days, compared to 203.06 days in Q3 2023. This marks a notable deterioration in the company's ability to convert its resources into cash.
Looking at the longer-term trend, the cash conversion cycle has generally shown an increasing pattern since Q1 2022, where it was at 160.12 days. This suggests that Intuitive Surgical Inc may be facing challenges in efficiently managing its inventory, receivables, and payables, leading to a longer cash conversion cycle.
Overall, a rising cash conversion cycle typically indicates inefficiencies in the company's working capital management processes. It is important for Intuitive Surgical Inc to closely monitor and address the factors contributing to this trend to improve its cash flow performance and overall financial health.