Masimo Corporation (MASI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 163,000 | 202,900 | 745,300 | 641,400 | 567,687 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 120,000 |
| Total current liabilities | US$ in thousands | 563,800 | 630,000 | 267,700 | 233,836 | 172,219 |
| Cash ratio | 0.29 | 0.32 | 2.78 | 2.74 | 3.99 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($163,000K
+ $—K)
÷ $563,800K
= 0.29
The cash ratio of Masimo Corporation has exhibited a decreasing trend over the past five years, declining from 3.99 in 2019 to 0.29 in 2023. The cash ratio measures the company's ability to cover its short-term obligations solely with its readily available cash and cash equivalents. A lower cash ratio indicates that Masimo may have a reduced ability to cover its short-term liabilities with its current cash holdings. It is important for investors and creditors to closely monitor Masimo's cash position and liquidity management strategies given the declining trend in the cash ratio over the years. Furthermore, Masimo may need to evaluate its cash management practices to ensure it maintains a healthy cash position to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023