Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Boston Scientific Corp., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.97 | 0.76 | 0.68 | 0.90 | 1.43 | |
| Quick ratio | 0.42 | 0.33 | 0.31 | 0.47 | 0.66 | |
| Cash ratio | 0.04 | 0.03 | 0.03 | 0.05 | 0.13 |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Boston Scientific Corp.’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Boston Scientific Corp.’s quick ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Boston Scientific Corp.’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Current Ratio
Boston Scientific Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 4,699 | 4,003 | 3,822 | 3,239 | 3,471 | |
| Current liabilities | 4,866 | 5,260 | 5,654 | 3,587 | 2,430 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.97 | 0.76 | 0.68 | 0.90 | 1.43 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 1.18 | 1.03 | 5.58 | 1.45 | 1.38 | |
| Danaher Corp. | 5.19 | 1.47 | 1.43 | 0.97 | 1.27 | |
| Intuitive Surgical Inc. | 4.53 | 5.28 | 3.99 | 5.45 | 4.46 | |
| Medtronic PLC | 2.59 | 2.28 | 1.75 | 3.29 | 3.36 | |
| Stryker Corp. | 2.58 | 2.02 | 2.29 | 2.50 | 2.27 | |
| Thermo Fisher Scientific Inc. | 1.92 | 1.73 | 1.34 | 1.44 | 1.38 | |
| UnitedHealth Group Inc. | 0.69 | 0.73 | 0.73 | 0.69 | 0.74 | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.33 | 1.14 | 1.24 | 1.15 | 1.31 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.47 | 1.52 | 1.60 | 1.78 | 1.70 | |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,699 ÷ 4,866 = 0.97
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Boston Scientific Corp.’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Boston Scientific Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 217 | 146 | 188 | 196 | 319 | |
| Trade accounts receivable, net | 1,828 | 1,608 | 1,548 | 1,472 | 1,275 | |
| Total quick assets | 2,045 | 1,754 | 1,736 | 1,668 | 1,594 | |
| Current liabilities | 4,866 | 5,260 | 5,654 | 3,587 | 2,430 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.42 | 0.33 | 0.31 | 0.47 | 0.66 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.52 | 0.50 | 4.77 | 0.72 | 0.70 | |
| Danaher Corp. | 4.68 | 0.88 | 0.87 | 0.60 | 0.77 | |
| Intuitive Surgical Inc. | 3.75 | 4.56 | 3.51 | 5.00 | 3.97 | |
| Medtronic PLC | 1.90 | 1.71 | 1.36 | 2.54 | 2.68 | |
| Stryker Corp. | 1.66 | 1.25 | 1.43 | 1.70 | 1.64 | |
| Thermo Fisher Scientific Inc. | 1.09 | 1.01 | 0.74 | 0.79 | 0.72 | |
| UnitedHealth Group Inc. | 0.58 | 0.61 | 0.62 | 0.59 | 0.61 | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.01 | 0.82 | 0.95 | 0.85 | 0.97 | |
| Quick Ratio, Industry | ||||||
| Health Care | 1.12 | 1.12 | 1.23 | 1.38 | 1.29 | |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,045 ÷ 4,866 = 0.42
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Boston Scientific Corp.’s quick ratio improved from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Boston Scientific Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 217 | 146 | 188 | 196 | 319 | |
| Total cash assets | 217 | 146 | 188 | 196 | 319 | |
| Current liabilities | 4,866 | 5,260 | 5,654 | 3,587 | 2,430 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.04 | 0.03 | 0.03 | 0.05 | 0.13 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.11 | 0.17 | 4.25 | 0.36 | 0.33 | |
| Danaher Corp. | 4.04 | 0.16 | 0.13 | 0.14 | 0.13 | |
| Intuitive Surgical Inc. | 3.13 | 3.73 | 2.78 | 4.28 | 3.17 | |
| Medtronic PLC | 1.16 | 1.11 | 0.96 | 1.76 | 2.12 | |
| Stryker Corp. | 1.01 | 0.77 | 0.80 | 1.07 | 1.16 | |
| Thermo Fisher Scientific Inc. | 0.39 | 0.34 | 0.19 | 0.16 | 0.11 | |
| UnitedHealth Group Inc. | 0.23 | 0.27 | 0.31 | 0.27 | 0.30 | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.56 | 0.40 | 0.56 | 0.44 | 0.56 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.72 | 0.71 | 0.84 | 0.97 | 0.89 | |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 217 ÷ 4,866 = 0.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Boston Scientific Corp.’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |