Masimo Corporation (MASI)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	163,000	124,400	150,700	174,100	202,900	219,500	218,000	720,000	745,300	652,300	576,000	551,992	641,400	669,056	631,881	605,916	567,687	513,360	408,784	412,861
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	0	50,000	50,000	50,000	120,000	120,000	180,000	180,000
Receivables	US$ in thousands	384,100	383,700	373,700	—	19,100	—	—	—	203,175	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	172,219	150,008	136,074	121,157
Quick ratio		0.97	0.88	0.92	0.30	0.35	0.37	0.39	2.83	3.54	2.86	2.62	2.80	2.74	3.09	3.00	4.17	3.99	4.22	4.33	4.89

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 for Masimo Corporation has displayed significant fluctuations over the reported periods. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In Dec 2023, the quick ratio stood at 0.97, indicating that the company had $0.97 in liquid assets for every $1 of current liabilities. This suggests that Masimo had a relatively strong short-term liquidity position at that time. However, this ratio decreased to 0.30 in Mar 2023, reflecting a substantial decline in liquidity.

The quick ratio improved in subsequent quarters, reaching 4.17 in Mar 2020 and peaking at 4.89 in Dec 2019. These high ratios suggest Masimo had a significant amount of liquid assets compared to current liabilities during those periods.

Overall, although the company experienced fluctuations in its quick ratio, it is essential to consider the industry norms and specific business circumstances to make a more informed assessment of Masimo Corporation's liquidity position.