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.
Peer comparison
Dec 31, 2023