Masimo Corporation (MASI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	163,000	202,900	745,300	641,400	567,687
Short-term investments	US$ in thousands	—	—	—	0	120,000
Receivables	US$ in thousands	384,100	19,100	203,175	143,633	3,044
Total current liabilities	US$ in thousands	563,800	630,000	267,700	233,836	172,219
Quick ratio		0.97	0.35	3.54	3.36	4.01

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($163,000K + $—K + $384,100K) ÷ $563,800K
= 0.97

The quick ratio of Masimo Corporation has exhibited fluctuations over the past five years. In 2019 and 2020, the quick ratio was relatively high at 4.01 and 3.36 respectively, indicating a strong ability to meet short-term obligations using its most liquid assets. However, there was a significant decline in 2021 where the quick ratio dropped to 3.54, albeit still at a healthy level.

The quick ratio took a steep decrease in 2022, falling to 0.35, reflecting a potential liquidity strain or inefficiency in managing short-term liabilities with liquid assets during that period. Subsequently, in 2023, the quick ratio increased to 0.97, showing some improvement but remaining below the levels seen in previous years.

Overall, the quick ratio trend for Masimo Corporation indicates fluctuations in its short-term liquidity position, with the company experiencing periods of both strength and weakness in its ability to quickly cover its short-term obligations using its liquid assets. Management may need to monitor and address factors impacting liquidity to ensure the company's financial health and stability in the future.