Masimo Corporation (MASI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 177,600 | 163,000 | 202,900 | 745,300 | 641,400 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Receivables | US$ in thousands | 19,600 | 384,100 | 19,100 | 203,175 | 143,633 |
| Total current liabilities | US$ in thousands | 617,700 | 563,800 | 630,000 | 267,700 | 233,836 |
| Quick ratio | 0.32 | 0.97 | 0.35 | 3.54 | 3.36 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($177,600K
+ $—K
+ $19,600K)
÷ $617,700K
= 0.32
The quick ratio of Masimo Corporation has exhibited significant fluctuations over the years. Starting at a high of 3.36 in December 2020 and further improving to 3.54 in December 2021, the ratio indicated a strong liquidity position, with the company having an ample amount of liquid assets to cover its short-term obligations. However, there was a sharp decline in the quick ratio to 0.35 in December 2022, suggesting a potential liquidity strain or inefficiency in managing short-term liabilities.
Although there was some recovery to 0.97 in December 2023, indicating a partial improvement in liquidity position, the quick ratio dropped again to 0.32 by December 2024, reflecting ongoing challenges in maintaining sufficient liquid assets relative to short-term liabilities. These fluctuations highlight the importance of closely monitoring liquidity management practices within Masimo Corporation to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024