Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

$24.99

Analysis of Liquidity Ratios

Microsoft Excel

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Liquidity Ratios (Summary)

Intuitive Surgical Inc., liquidity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio
Quick ratio
Cash ratio

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Current Ratio
The current ratio demonstrates a declining trend from 6.86 in 2020 to 4.07 in 2024. While it experienced a slight increase between 2022 and 2023, the overall pattern indicates a gradual reduction in the company's short-term liquidity relative to its current liabilities over the five-year period.
Quick Ratio
The quick ratio also shows a downward trajectory, falling from 5.96 in 2020 to 3.00 in 2024. Similar to the current ratio, there was a minor rise observed from 2022 to 2023. Despite this small uptick, the consistent decrease suggests a diminishing ability to cover immediate liabilities with the most liquid assets over time.
Cash Ratio
The cash ratio follows the same declining pattern, starting at 5.30 in 2020 and reducing to 2.30 by 2024. Although there was a slight recovery in 2023, the overall decrease indicates a reduced buffer of cash and cash equivalents set against current liabilities.
Summary
Collectively, all three liquidity ratios decreased notably across the period, signaling a reduction in the company's liquidity position. The decreases could imply a strategic decision to utilize cash or other current assets more intensively, or potentially reflect changes in working capital management. Despite these declines, the ratios remain above typical benchmark levels, suggesting that the company maintains a strong liquidity profile even as it reduces some of its liquidity buffers.

Current Ratio

Intuitive Surgical Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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.
Medtronic PLC
UnitedHealth Group Inc.
Current Ratio, Sector
Health Care Equipment & Services
Current Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Current Assets
Current assets showed a fluctuating trend over the analyzed periods. Starting at 6,625,900 thousand US dollars in 2020, current assets declined to 5,844,900 thousand in 2021. They then increased to 6,253,000 thousand in 2022 and further rose significantly to 7,888,000 thousand by the end of 2023. In 2024, current assets decreased again to 7,111,000 thousand. Overall, the asset base experienced a decline in the early years, but rebounded substantially in 2023 before a slight decrease in 2024.
Current Liabilities
Current liabilities exhibited a consistent upward trend across the five years. Starting from 965,200 thousand US dollars in 2020, current liabilities increased steadily year-over-year to reach 1,745,300 thousand by the end of 2024. This indicates growing short-term obligations over the period under review.
Current Ratio
The current ratio, calculated as current assets divided by current liabilities, displayed a declining pattern over time. From a high of 6.86 in 2020, the ratio decreased sharply to 5.08 in 2021 and continued its decline to 4.40 in 2022. Although it improved slightly to 4.76 in 2023, it dropped again to 4.07 in 2024. This indicates a gradual reduction in short-term liquidity, suggesting that while the company’s assets remain significantly higher than its liabilities, its buffer to cover short-term obligations has weakened over the observed period.
Overall Analysis
The data reveal a mixed picture of liquidity management. Despite some recovery in current assets in 2023, the steady increase in current liabilities exerted downward pressure on the current ratio. This declining liquidity ratio trend could signal increased risk in meeting short-term obligations if the pattern continues. However, the current ratio remaining above 4.0 across the years still suggests a relatively strong liquidity position. Going forward, monitoring the pace of growth in current liabilities relative to current assets will be crucial for maintaining financial health.

Quick Ratio

Intuitive Surgical Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term investments
Accounts receivable, net of allowances
Total quick assets
 
Current liabilities
Liquidity Ratio
Quick ratio1
Benchmarks
Quick Ratio, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Medtronic PLC
UnitedHealth Group Inc.
Quick Ratio, Sector
Health Care Equipment & Services
Quick Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Total Quick Assets
The total quick assets demonstrate some fluctuations over the examined periods. Initially, there is a decline from approximately $5.76 billion in 2020 to around $4.99 billion in 2021. This is followed by a marginal increase to about $5.06 billion in 2022, then a more significant rise to $6.35 billion in 2023. However, in 2024, total quick assets decline again to roughly $5.24 billion. Overall, the data reveals some volatility in highly liquid assets without showing a consistent upward or downward trend.
Current Liabilities
Current liabilities exhibit a clear upward trend across the entire timeframe. Starting from $965.2 million in 2020, current liabilities steadily increase year-over-year, reaching $1.15 billion in 2021, $1.42 billion in 2022, $1.66 billion in 2023, and $1.75 billion in 2024. This steady climb indicates growing short-term obligations, which merits attention regarding the company’s liquidity risks and working capital management.
Quick Ratio
The quick ratio, which assesses short-term liquidity by comparing quick assets to current liabilities, shows a declining trend over the period. The ratio decreases from a high of 5.96 in 2020 to 4.34 in 2021, followed by a sharper drop to 3.56 in 2022. There is a slight recovery to 3.83 in 2023, but then it drops further to 3.00 in 2024. Although the quick ratio remains above 1 throughout, indicating the company maintains sufficient liquid assets to meet short-term liabilities, the downward trend signals diminishing liquidity strength relative to obligations.

Cash Ratio

Intuitive Surgical Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term investments
Total cash assets
 
Current liabilities
Liquidity Ratio
Cash ratio1
Benchmarks
Cash Ratio, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Medtronic PLC
UnitedHealth Group Inc.
Cash Ratio, Sector
Health Care Equipment & Services
Cash Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Total Cash Assets
The total cash assets exhibited a declining trend from 2020 through 2022, falling from approximately $5.11 billion to $4.12 billion. In 2023, there was a notable increase to around $5.22 billion, followed by a decline again in 2024 to approximately $4.01 billion. This pattern indicates fluctuations in liquidity resources over the five-year period, with the peak occurring in 2023.
Current Liabilities
Current liabilities showed a consistent upward trend across the entire period under review. Starting at roughly $965 million in 2020, current liabilities increased steadily each year, reaching about $1.75 billion by 2024. This continuous rise suggests growing short-term obligations.
Cash Ratio
The cash ratio, measuring cash assets relative to current liabilities, demonstrated a decreasing trend overall. Beginning at a high ratio of 5.3 in 2020, it declined sharply by 2022 to 2.9, then slightly increased in 2023 to 3.15 before falling again to 2.3 in 2024. Despite the temporary bounce in 2023, the ratio indicates decreasing liquidity coverage relative to current liabilities over time.