Stock Analysis on Net
Stock Analysis on Net

Abiomed Inc. (NASDAQ:ABMD)

$22.49

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity ratios measure the company ability to meet its short-term obligations.

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Liquidity Ratios (Summary)

Abiomed Inc., liquidity ratios

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Current ratio
Quick ratio
Cash ratio

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Current Ratio
The current ratio demonstrates a generally upward trend over the six-year period, increasing from 4.7 in 2017 to 7.05 in 2022. Despite a slight decline observed in 2020 to 4.82, the ratio rebounded strongly in subsequent years, indicating improving short-term liquidity and an enhanced ability to meet current liabilities with current assets.
Quick Ratio
The quick ratio follows a similar pattern to the current ratio, increasing from 4.08 in 2017 to 6.13 in 2022. The ratio dipped in 2020 to 4.0 but subsequently recovered, suggesting a consistent improvement in the company’s capacity to cover immediate liabilities without relying on inventory.
Cash Ratio
The cash ratio also shows growth over the period, rising from 3.3 in 2017 to 5.48 in 2022. This metric experienced a decline in 2020 to 3.36 but then marked a strong upward movement. The increasing cash ratio reflects a strengthening liquidity position with more cash and cash equivalents available relative to current liabilities.

Current Ratio

Abiomed Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Current assets
Current liabilities
Liquidity Ratio
Current ratio1
Benchmarks
Current Ratio, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Current Ratio, Sector
Health Care Equipment & Services
Current Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Current Assets
Current assets exhibited a consistent upward trend over the period from March 31, 2017, through March 31, 2022. Starting at approximately $327 million, current assets increased steadily each year, reaching nearly $976 million by the end of the latest period. This indicates a substantial accumulation of liquid and short-term assets available to meet obligations.
Current Liabilities
Current liabilities also increased during the same timeframe, but at a more moderate pace compared to current assets. Beginning at around $70 million in 2017, liabilities rose annually to approximately $138 million by 2022. Although the absolute value of liabilities doubled, the growth was less pronounced than that of current assets.
Current Ratio
The current ratio, defined as current assets divided by current liabilities, displayed fluctuations but generally demonstrated strong liquidity throughout the period. It started at 4.7 in 2017, peaked at 6.39 in 2019, dipped in 2020 to 4.82, then increased again to reach its highest level of 7.05 in 2022. These values indicate a consistently healthy liquidity position, with the ability to cover short-term obligations multiple times over, despite some variability likely attributable to changes in either assets or liabilities within specific years.

Quick Ratio

Abiomed Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term marketable securities
Accounts receivable, net
Total quick assets
 
Current liabilities
Liquidity Ratio
Quick ratio1
Benchmarks
Quick Ratio, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Quick Ratio, Sector
Health Care Equipment & Services
Quick Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Trends in Total Quick Assets
Total quick assets show a consistent upward trend over the six-year period. Starting at $284,003 thousand in March 2017, there was substantial growth each year, reaching $849,215 thousand by March 2022. Notable increases are observed particularly between 2017 and 2019 and again from 2020 to 2022, indicating a strengthening liquidity position.
Trends in Current Liabilities
Current liabilities also increased over the period but at a much slower pace compared to total quick assets. The amount rose from $69,617 thousand in 2017 to $138,457 thousand in 2022. The growth in current liabilities appears more gradual and relatively stable, with a minor decrease between 2020 and 2021.
Analysis of Quick Ratio
The quick ratio, which measures the ability to cover current liabilities with quick assets, fluctuates over the period but generally trends upward. It started at 4.08 in 2017, peaked at 5.5 in 2019, dropped significantly to 4 in 2020, then rebounded strongly in subsequent years to reach 6.13 by 2022. This higher ratio in recent years suggests improved short-term liquidity and a stronger buffer against immediate obligations.
Summary of Financial Position
The overall data indicates a robust enhancement in liquidity. While current liabilities have increased moderately, the more pronounced growth in total quick assets and the strengthening quick ratio highlight improved ability to meet short-term liabilities without reliance on inventory. The dip in quick ratio in 2020 may reflect temporary pressures, possibly linked to external factors affecting the business environment, but recovery afterward suggests effective management of liquidity risks.

Cash Ratio

Abiomed Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term marketable securities
Total cash assets
 
Current liabilities
Liquidity Ratio
Cash ratio1
Benchmarks
Cash Ratio, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Cash Ratio, Sector
Health Care Equipment & Services
Cash Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Total Cash Assets
The total cash assets demonstrated a consistent upward trend over the six-year period. Starting at $229,948 thousand in 2017, the figure more than tripled to reach $758,607 thousand by 2022. Notable increases occurred between 2017 and 2019, and again between 2020 and 2022, despite a slight dip in 2020 compared to 2019.
Current Liabilities
Current liabilities also showed an overall upward trajectory, increasing from $69,617 thousand in 2017 to $138,457 thousand in 2022. The growth was relatively steady across the years, with no substantial declines. The most pronounced increases were observed from 2017 to 2020, followed by smaller increments thereafter.
Cash Ratio
The cash ratio, a measure of liquidity, fluctuated but generally indicated strong liquidity throughout the period. It began at 3.3 in 2017, rose to a peak of 4.64 in 2019, declined notably in 2020 to 3.36, then increased sharply to 5.48 by 2022. The ratio remained well above 1.0 in all years, highlighting that cash assets comfortably exceeded current liabilities at each year-end.
Summary
The data reflects a firm with growing liquidity and increasing cash reserves that consistently outpace current liabilities by a wide margin. The slight decrease in total cash assets and cash ratio in 2020, likely influenced by external factors during that year, was followed by a pronounced recovery and growth in subsequent years. Overall, the financial position regarding cash management and capability to cover short-term obligations improved substantially over the observed period.