Masimo Corporation (MASI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	177,600	163,000	202,900	745,300	641,400
Short-term investments	US$ in thousands	—	—	—	—	0
Total current liabilities	US$ in thousands	617,700	563,800	630,000	267,700	233,836
Cash ratio		0.29	0.29	0.32	2.78	2.74

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($177,600K + $—K) ÷ $617,700K
= 0.29

The cash ratio of Masimo Corporation has demonstrated some fluctuations over the years. As of December 31, 2020, the cash ratio stood at 2.74, indicating that the company had $2.74 of cash and cash equivalents for every $1 of current liabilities. This suggests that Masimo had a strong liquidity position at that time.

By December 31, 2021, the cash ratio had slightly increased to 2.78, demonstrating a further improvement in the company's ability to cover its short-term obligations with its available cash resources.

However, there was a significant drop in the cash ratio by the end of December 31, 2022, where it sharply declined to 0.32. This substantial decrease may raise concerns about Masimo's short-term liquidity position and its ability to meet immediate financial obligations solely from its cash holdings.

The cash ratio remained relatively stable in the following years, standing at 0.29 as of December 31, 2023, and remained the same by the end of December 31, 2024. This consistency may indicate that Masimo's liquidity position stabilized at a lower level compared to the earlier years.

Overall, the fluctuations in Masimo Corporation's cash ratio suggest varying levels of liquidity over the analyzed period, with a notable decrease in liquidity from 2021 to 2022. It would be important for investors and stakeholders to further assess the company's overall financial health and liquidity management strategies in light of these observations.