Masimo Corporation (MASI)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 567,687 | 513,360 | 408,784 | 412,861 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 50,000 | 50,000 | 50,000 | 120,000 | 120,000 | 180,000 | 180,000 |
| Total current liabilities | US$ in thousands | 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 | 172,219 | 150,008 | 136,074 | 121,157 |
| Cash ratio | 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 | 3.99 | 4.22 | 4.33 | 4.89 |
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 for Masimo Corporation has fluctuated over the past few quarters, indicating variations in the company's ability to cover its short-term liabilities with cash and cash equivalents. The cash ratio was relatively stable and healthy, with values above 2.0, for the periods from Dec 31, 2020, to Jun 30, 2022. This suggests that the company had a strong ability to meet its short-term obligations using its cash reserves during this time.
However, there was a significant drop in the cash ratio to 0.39 on Sep 30, 2022, followed by a further decrease to 0.32 on Dec 31, 2022, signaling a potential strain on the company's liquidity position during these periods. This sharp decline may raise concerns about Masimo's short-term financial health and its ability to cover immediate liabilities with cash on hand.
Subsequently, the cash ratio improved to 0.39 on Mar 31, 2023, and continued to increase to 0.30 on Jun 30, 2023, and 0.26 on Sep 30, 2023, indicating a recovery in the company's liquidity position. However, the ratio remains below the levels observed in the earlier stable period, indicating that Masimo may still be working to strengthen its cash reserves and liquidity position.
Overall, while Masimo Corporation experienced fluctuations in its cash ratio, it is essential for the company to carefully manage its liquidity to ensure it can meet its short-term obligations and maintain financial stability in the face of changing market conditions.
Peer comparison
Dec 31, 2023