Intuitive Surgical Inc (ISRG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.07 | 4.30 | 5.15 | 5.55 | 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 |
| Quick ratio | 3.00 | 3.21 | 3.94 | 4.31 | 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 |
| 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 |
Intuitive Surgical Inc's current ratio has shown a generally stable trend over the past few years, remaining above 5, which indicates that the company has a strong ability to cover its short-term obligations with its current assets. However, there was a slight decline towards the end of the period, reaching 4.07 by December 31, 2024, which may signify a relative decrease in liquidity compared to previous periods.
The quick ratio, which excludes inventory from current assets, also displayed a consistent and strong performance, staying above 3 throughout the period. The ratio remained relatively high, above 4 until the end of 2023, indicating the company's ability to cover its short-term liabilities with its most liquid assets. However, by the end of 2024, the quick ratio dropped to 3.00, signaling a potential decrease in liquidity compared to earlier periods.
Intuitive Surgical Inc's cash ratio, measuring the ability to cover current liabilities with cash and equivalents, remained above 2 throughout the period, reflecting a strong liquidity position. However, similar to the quick ratio, there was a downward trend towards the end of the period, with the ratio decreasing to 2.30 by December 31, 2024.
Overall, while Intuitive Surgical Inc maintained strong liquidity ratios throughout the period, there were slight declines observed in the current, quick, and cash ratios towards the end of the period, suggesting a potential need to monitor liquidity levels closely in the future.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 146.79 | 147.41 | 144.98 | 143.22 | 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 |
The cash conversion cycle for Intuitive Surgical Inc has shown some fluctuations over the past years. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle of Intuitive Surgical Inc ranged from a high of 148.63 days in September 2020 to a low of 100.82 days in December 2021. The trend of the cash conversion cycle has been somewhat volatile, with fluctuations occurring within a range.
Generally, a shorter cash conversion cycle indicates that the company is efficiently managing its working capital and turning inventory into sales quickly. Conversely, a longer cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying creditors.
It is essential for Intuitive Surgical Inc to monitor its cash conversion cycle regularly to optimize its working capital management and improve overall efficiency in its operations. By analyzing this metric, the company can identify areas for improvement and make strategic decisions to enhance its cash flow and profitability.