Masimo Corporation (MASI)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,225,800	1,231,900	1,308,600	1,238,500	1,101,160
Total current liabilities	US$ in thousands	617,700	563,800	630,000	267,700	233,836
Current ratio		1.98	2.18	2.08	4.63	4.71

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,225,800K ÷ $617,700K
= 1.98

The current ratio of Masimo Corporation has experienced fluctuations over the past five years. As of December 31, 2020, the current ratio stood at a healthy 4.71, indicating a strong ability to cover its short-term obligations with its current assets. However, there has been a slight decrease in the current ratio to 4.63 as of December 31, 2021. Despite this decrease, the ratio remains at a relatively comfortable level.

In the subsequent years, there has been a more significant decline in the current ratio to 2.08 as of December 31, 2022, followed by a slight increase to 2.18 as of December 31, 2023. The latest reported current ratio as of December 31, 2024, shows a further decrease to 1.98.

While the current ratio is still above 1, which generally indicates that the company can meet its short-term liabilities with its current assets, the downward trend raises some concerns about Masimo's liquidity position. It is important for the company to closely monitor its current assets and liabilities to ensure it can effectively manage its short-term financial obligations in the future.