Liquidity ratios measure the company ability to meet its short-term obligations.
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- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Liquidity Ratios (Summary)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Current Ratio
- The current ratio demonstrates variability across the examined periods, beginning at a relatively high level of 3.45 in March 2017 and peaking at 4.06 in June 2017. Following this peak, a notable decline to 1.8 occurred by December 2017, indicating a reduction in short-term liquidity. Subsequently, the ratio rose again, maintaining levels generally above 3.0 from March 2019 through December 2021, with minor fluctuations. This pattern suggests initial volatility but a stabilization and strengthening of current asset coverage over current liabilities in recent years.
- Quick Ratio
- The quick ratio trends similarly to the current ratio, starting at 2.44 in March 2017 and increasing to 2.92 by June 2017. A sharp decline is observed by December 2017 to 1.28, reflecting decreased immediate liquidity possibly due to inventory or prepaid expenses adjustments. After this trough, the quick ratio steadily recovered, consistently remaining above 2.0 from March 2019 onward. Minor decreases observed in mid and late 2020 were followed by gradual improvement into 2021, indicating a recovery in liquid asset availability excluding inventory.
- Cash Ratio
- The cash ratio exhibited a pattern of peaks and troughs within the timeframe. Starting at 1.57 in March 2017, it rose to a high of 2.01 by June 2017, followed by a decline to 0.95 at year-end 2017, the lowest point in the dataset. The ratio then fluctuated between approximately 1.1 and 1.8 from 2018 through 2019. During 2020, despite the overall volatility attributed to market conditions, the cash ratio remained near or above 1.3. It improved steadily in 2021, reaching 1.86 by September before a slight decrease to 1.42 by December. This trend indicates cautious cash management with adequate cash reserves relative to current liabilities across the periods, though some variability is evident.
- Summary of Liquidity Trends
- All three liquidity ratios show pronounced declines at the end of 2017, suggesting a transient period of reduced liquidity. The recovery post-2017 indicates improved management of working capital and liquidity reserves. The current ratio remains substantially above 3.0 in recent years, denoting strong ability to meet short-term obligations. The quick and cash ratios, while lower, have improved sustainably, highlighting a balanced approach in managing more liquid assets relative to liabilities. Periodic fluctuations suggest responsive adjustments to changing operational or market conditions rather than a persistent liquidity concern.
Current Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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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. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibited an overall upward trajectory over the observed quarters. Starting at approximately 2.0 billion US dollars in March 2017, the value peaked intermittently, reaching around 3.5 billion by the fourth quarter of 2021. There were fluctuations, including a notable dip in late 2018, yet the general trend indicates consistent growth in liquid or short-term assets.
- Current Liabilities
- Current liabilities showed greater variability throughout the period. Initially, liabilities hovered under 600 million US dollars but rose sharply in the fourth quarter of 2017, nearing 1.4 billion. After this peak, liabilities decreased to lower levels through 2018 and 2019, before exhibiting another increasing trend from early 2020 onwards. By December 2021, current liabilities approached 1 billion US dollars, indicating a moderate increase relative to the start of the period.
- Current Ratio
- The current ratio displayed significant fluctuations, mirroring the changes in assets and liabilities. From a strong liquidity position exceeding 3.4 in early 2017, the ratio declined steeply to 1.8 by the end of 2017, correlating with a peak in liabilities. Subsequently, it recovered and remained above 2.0 across most quarters, averaging around 3.3 to 3.8 in the 2019-2021 period, indicative of a generally healthy short-term financial position. The ratio’s decline towards the end of 2021 to just above 3.0 suggests some tightening in liquidity but still remains within a robust range.
- Overall Analysis
- The financial data reveals a company that has been able to grow its current assets significantly over the analyzed period while managing current liabilities with some volatility. The significant spike in liabilities in late 2017 caused a temporary reduction in the current ratio, but liquidity recovered thereafter. The consistently elevated current ratios in recent years suggest maintained operational stability and sufficient coverage of short-term obligations. The trends indicate prudent working capital management and an ability to balance asset growth with liability control.
Quick Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||
Accounts receivable, net of allowances | ||||||||||||||||||||||||||
Other receivables | ||||||||||||||||||||||||||
Accounts and other receivables, net of allowances (legacy) | ||||||||||||||||||||||||||
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. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited an overall upward trend from March 2017 through December 2021, increasing from approximately 1,428,400 thousand US dollars to a peak of 2,458,900 thousand US dollars in September 2021 before a slight decline to 2,131,700 thousand US dollars in December 2021. Notably, there was a sharp decrease in December 2018 to 1,493,800 thousand, which was followed by a recovery and consistent growth through 2019 and into early 2020. This trend suggests an improving liquidity position over the longer term, despite intermittent fluctuations.
- Current Liabilities
- Current liabilities showed considerable volatility over the analyzed periods. The values were relatively stable around 584,800 to 735,200 thousand US dollars until a significant spike occurred at the end of 2017, reaching 1,402,900 thousand US dollars. Following this spike, liabilities declined steadily throughout 2018 but remained elevated compared to earlier periods. From 2019 onward, liabilities fluctuated between approximately 646,500 thousand and 1,032,300 thousand US dollars, showing an overall upward tendency toward the end of 2021, suggesting an increasing short-term financial obligation burden.
- Quick Ratio
- The quick ratio experienced considerable variation across the quarters. Initially, it was strong in early 2017, with values above 2.4, then sharply dropped to a low of 1.28 by December 2017, aligning with the spike in current liabilities. Subsequent quarters saw a gradual recovery and stabilization of the quick ratio around the range of 1.48 to 1.7 during 2018. Entering 2019 and through most of 2021, the quick ratio consistently remained above 2.0, reaching a peak of 2.55 in September 2021, before decreasing modestly to 2.07 by December 2021. This pattern indicates an initial liquidity challenge followed by sustained improvement and solid liquidity maintenance in recent years.
- Overall Analysis
- Over the examined period, the liquidity position, as measured by total quick assets and the quick ratio, improved considerably despite some temporary setbacks. The significant increase in current liabilities at the end of 2017 impacted liquidity ratios negatively; however, the subsequent recovery reflects effective management of liquid assets versus liabilities. Toward the latter quarters, the data presents a stable and strong liquidity profile, although the slight decline in quick assets and quick ratio at the end of 2021 may warrant monitoring. The fluctuations suggest that the company faces periods of elevated short-term obligations but maintains sufficient liquid assets to manage these commitments effectively.
Cash Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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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. | ||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||
UnitedHealth Group Inc. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning liquidity and short-term financial stability.
- Total Cash Assets
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Total cash assets exhibit a generally positive trend over the observed period, increasing from approximately 918 million US dollars at the beginning of 2017 to peak values above 1.7 billion US dollars by late 2021. There are fluctuations within this upward trajectory, including a significant dip towards the end of 2018 and variations in 2020, but the overall movement reflects growth in cash reserves.
- Current Liabilities
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Current liabilities present a more volatile pattern. Initially decreasing from around 585 million US dollars to approximately 562 million by mid-2017, they then sharply rise, nearly doubling to over 1.4 billion by the end of 2017. Subsequently, current liabilities decline and fluctuate moderately through 2018 and 2019, with a visible dip in the first quarter of 2019. From 2020 onward, current liabilities generally trend upward, culminating in a high of over 1 billion US dollars in late 2021.
- Cash Ratio
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The cash ratio, reflecting the company's immediate liquidity position, mirrors the interplay between cash assets and current liabilities. Starting at a robust 1.57 early in 2017, the ratio grows to over 2.0 by mid-2017, indicating strong coverage of current liabilities by cash. However, a decline is observed by the end of 2017, dipping below 1.0, suggesting cash was insufficient to cover current liabilities at that point. Following this trough, the cash ratio steadily improves, experiencing fluctuations but generally increasing through late 2021, where it peaks near 1.86 before a slight decrease at the end of the period. This pattern suggests an overall strengthening of the company's liquidity over the examined quarters.
In summary, the data indicates that while current liabilities have shown volatility and a generally upward trend, total cash assets have increased overall. The cash ratio confirms fluctuations in liquidity, with a marked decline in late 2017 but subsequent improvement and maintenance at levels that suggest adequate coverage of short-term obligations by cash. These dynamics reflect the company's evolving liquidity management amidst changing financial obligations.