Masimo Corporation (MASI)

Cash ratio

		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 and cash equivalents	US$ in thousands	177,600	158,500	129,600	157,600	163,000	124,400	150,700	174,100	202,900	219,500	218,000	720,000	745,300	652,300	576,000	551,992	641,400	669,056	631,881	605,916
Short-term investments	US$ in thousands	177,600	-90,600	—	—	—	—	—	—	—	—	—	—	—	—	—	—	0	50,000	50,000	50,000
Total current liabilities	US$ in thousands	617,700	637,600	546,200	504,200	563,800	578,800	571,900	583,200	630,000	587,300	552,000	254,311	267,700	228,254	220,029	196,872	233,836	232,752	227,556	157,292
Cash ratio		0.58	0.11	0.24	0.31	0.29	0.21	0.26	0.30	0.32	0.37	0.39	2.83	2.78	2.86	2.62	2.80	2.74	3.09	3.00	4.17

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($177,600K + $177,600K) ÷ $617,700K
= 0.58

The cash ratio of Masimo Corporation has shown a declining trend over the reported periods, starting at a relatively high level of 4.17 on March 31, 2020, and gradually decreasing to 0.58 on December 31, 2024. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents.

The decreasing trend in the cash ratio may suggest that Masimo Corporation has been utilizing its cash reserves for operational needs, investments, or other purposes. A decreasing cash ratio could potentially raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations.

It is important for stakeholders to closely monitor Masimo's cash management practices and assess the company's overall liquidity position in conjunction with other financial metrics to gain a comprehensive understanding of its financial health.