Masimo Corporation (MASI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,231,900 | 1,308,600 | 1,238,500 | 1,101,160 | 996,062 |
| Total current liabilities | US$ in thousands | 563,800 | 630,000 | 267,700 | 233,836 | 172,219 |
| Current ratio | 2.18 | 2.08 | 4.63 | 4.71 | 5.78 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,231,900K ÷ $563,800K
= 2.18
Masimo Corporation's current ratio has shown a declining trend over the past five years, decreasing from 5.78 in 2019 to 2.18 in 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally favorable as it indicates a company has more current assets than current liabilities.
The decrease in Masimo's current ratio may suggest a potentially reduced liquidity position or an increase in short-term liabilities relative to current assets. However, despite the decline, the current ratio remains above 1, indicating that Masimo has sufficient current assets to cover its current liabilities.
It is essential for Masimo to monitor its current ratio closely and assess the factors contributing to the decline to ensure it maintains a healthy liquidity position and can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023