Intuitive Surgical Inc (ISRG)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	1,225,400	1,130,200	942,100	782,700	645,500
Total current liabilities	US$ in thousands	1,745,300	1,658,700	1,422,100	1,149,800	965,200
Quick ratio		3.00	3.83	3.56	4.36	6.03

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,027,400K + $1,985,900K + $1,225,400K) ÷ $1,745,300K
= 3.00

The Quick Ratio of Intuitive Surgical Inc has shown a declining trend over the past few years. Starting at a robust 6.03 on December 31, 2020, the ratio has gradually decreased to 4.36 on December 31, 2021, further dropping to 3.56 on December 31, 2022. However, there was a slight improvement to 3.83 on December 31, 2023, before falling again to 3.00 on December 31, 2024.

This downward trend in the Quick Ratio suggests a potential weakening in the company's short-term liquidity position. A quick ratio below 1 typically indicates that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory.

While Intuitive Surgical Inc's Quick Ratio remains above 1, indicating that the company has an adequate level of short-term assets to cover its current liabilities, management should closely monitor this ratio to ensure it stays at a healthy level to meet any unexpected cash requirements in the future.