Masimo Corporation (MASI)

Current 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
Total current assets	US$ in thousands	1,225,800	1,279,900	1,142,200	1,165,600	1,231,900	1,237,500	1,208,200	1,260,800	1,308,600	1,245,600	1,158,200	1,224,740	1,238,500	1,137,790	1,051,840	983,110	1,101,160	1,158,970	1,092,610	980,156
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
Current ratio		1.98	2.01	2.09	2.31	2.18	2.14	2.11	2.16	2.08	2.12	2.10	4.82	4.63	4.98	4.78	4.99	4.71	4.98	4.80	6.23

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 been fluctuating over the past few years. It stood at a healthy level of 6.23 as of March 31, 2020, indicating a strong ability to meet short-term obligations. However, the ratio gradually declined to 4.63 by December 31, 2021, reflecting a potential strain on liquidity.

There was a slight recovery in the current ratio to 4.82 by March 31, 2022, but this improvement was short-lived as the ratio dropped significantly to 2.10 by June 30, 2022. This drop continued with the ratio hovering around the 2.00 mark for the subsequent quarters.

A current ratio of around 2.00 suggests that Masimo Corporation may be facing challenges in meeting its short-term obligations with its current assets alone. It is important for the company to closely monitor its liquidity position and potentially consider strategies to improve its current ratio in order to ensure financial stability and meet upcoming financial obligations on time.