Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Intuitive Surgical Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.87 | 4.07 | 4.76 | 4.40 | 5.08 | |
| Quick ratio | 3.72 | 3.00 | 3.83 | 3.56 | 4.34 | |
| Cash ratio | 2.96 | 2.30 | 3.15 | 2.90 | 3.66 |
Based on: 10-K (reporting date: 2025-12-31), 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).
The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally stable, though fluctuating, trend over the five-year period. While all ratios remain above one, suggesting a comfortable ability to cover short-term liabilities with short-term assets, a pattern of initial decline followed by partial recovery is observable.
- Current Ratio
- The current ratio decreased from 5.08 in 2021 to 4.07 in 2024, representing a notable decline in overall liquidity. However, the ratio partially recovered to 4.87 in 2025. This suggests a period of potentially increased current liabilities or decreased current assets, followed by a subsequent improvement in the short-term asset position.
- Quick Ratio
- A similar trend is evident in the quick ratio, which decreased from 4.34 in 2021 to a low of 3.00 in 2024 before increasing to 3.72 in 2025. This decline indicates a weakening ability to meet short-term obligations with the most liquid assets, excluding inventory. The subsequent increase suggests a stabilization of liquid asset coverage.
- Cash Ratio
- The cash ratio exhibits the most pronounced decline, falling from 3.66 in 2021 to 2.30 in 2024. This indicates a reduction in the proportion of current assets held as cash and cash equivalents. A partial recovery to 2.96 is observed in 2025, but the ratio remains lower than its initial value. This suggests a strategic shift in asset allocation or increased investment of cash resources.
Overall, the observed fluctuations suggest a dynamic liquidity management strategy. While the company maintains a strong liquidity position based on all three ratios, the declines observed through 2024 warrant further investigation into the underlying drivers of these changes. The partial recoveries in 2025 indicate a potential stabilization of the liquidity profile.
Current Ratio
Intuitive Surgical Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 9,779,500) | 7,111,000) | 7,888,000) | 6,253,000) | 5,844,900) | |
| Current liabilities | 2,006,200) | 1,745,300) | 1,658,700) | 1,422,100) | 1,149,800) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.87 | 4.07 | 4.76 | 4.40 | 5.08 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | 1.67 | 1.64 | 1.63 | 1.85 | |
| Elevance Health Inc. | — | 1.45 | 1.44 | 1.40 | 1.47 | |
| Medtronic PLC | 1.85 | 2.03 | 2.39 | 1.86 | 2.65 | |
| UnitedHealth Group Inc. | — | 0.83 | 0.79 | 0.77 | 0.79 | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | — | 1.15 | 1.15 | 1.13 | 1.22 | |
| Current Ratio, Industry | ||||||
| Health Care | — | 1.21 | 1.23 | 1.23 | 1.31 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,779,500 ÷ 2,006,200 = 4.87
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially strong, the ratio experienced a decline before stabilizing and showing improvement towards the end of the analyzed timeframe. This suggests a dynamic relationship between the company’s short-term assets and liabilities.
- Current Ratio Trend
- The current ratio began at 5.08 in 2021, indicating a substantial ability to cover short-term obligations with short-term assets. A decrease was observed in 2022, with the ratio falling to 4.40. This suggests a relative increase in current liabilities compared to current assets. The ratio partially recovered to 4.76 in 2023, but then declined again to 4.07 in 2024, representing the lowest point in the observed period. Finally, the ratio increased to 4.87 in 2025, signaling an improved liquidity position.
The fluctuations in the current ratio correlate with changes in both current assets and current liabilities. While current assets generally increased over the period, the growth was not consistent, and the increase in current liabilities consistently outpaced the growth of current assets in 2022 and 2024, contributing to the ratio’s decline during those years. The stronger growth in current assets in 2023 and 2025 helped to offset the increases in current liabilities and improve the ratio.
- Asset and Liability Relationship
- Current assets increased from US$5,844,900 thousand in 2021 to US$9,779,500 thousand in 2025. However, current liabilities also increased, moving from US$1,149,800 thousand in 2021 to US$2,006,200 thousand in 2025. The interplay between these two figures is the primary driver of the observed changes in the current ratio. The ratio’s lowest value in 2024 coincided with a relatively high level of current liabilities and a decrease in current assets compared to the prior year.
Overall, the company maintained a current ratio above 4.0 throughout the period, generally indicating a healthy liquidity position. However, the observed volatility suggests that the company’s short-term financial flexibility is subject to change and warrants continued monitoring.
Quick Ratio
Intuitive Surgical Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 3,368,000) | 2,027,400) | 2,750,100) | 1,581,200) | 1,290,900) | |
| Short-term investments | 2,566,900) | 1,985,900) | 2,473,100) | 2,536,700) | 2,913,100) | |
| Accounts receivable, net of allowances | 1,527,300) | 1,225,400) | 1,130,200) | 942,100) | 782,700) | |
| Total quick assets | 7,462,200) | 5,238,700) | 6,353,400) | 5,060,000) | 4,986,700) | |
| Current liabilities | 2,006,200) | 1,745,300) | 1,658,700) | 1,422,100) | 1,149,800) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.72 | 3.00 | 3.83 | 3.56 | 4.34 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | 1.05 | 1.00 | 1.06 | 1.28 | |
| Elevance Health Inc. | — | 1.32 | 1.30 | 1.27 | 1.33 | |
| Medtronic PLC | 1.20 | 1.31 | 1.54 | 1.30 | 1.91 | |
| UnitedHealth Group Inc. | — | 0.75 | 0.73 | 0.70 | 0.72 | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | — | 0.97 | 0.97 | 0.95 | 1.04 | |
| Quick Ratio, Industry | ||||||
| Health Care | — | 0.88 | 0.90 | 0.93 | 1.00 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,462,200 ÷ 2,006,200 = 3.72
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then increasing again. A review of the underlying components reveals insights into these movements.
- Overall Trend
- The quick ratio began at 4.34 in 2021, decreased to 3.56 in 2022, experienced a modest recovery to 3.83 in 2023, then declined to 3.00 in 2024, and finally increased to 3.72 in 2025. This indicates a period of declining short-term liquidity followed by a partial rebound.
- Quick Asset Movement
- Total quick assets generally increased over the period, moving from US$4,986.7 million in 2021 to US$7,462.2 million in 2025. However, there was a decrease from 2023 (US$6,353.4 million) to 2024 (US$5,238.7 million) which contributed to the drop in the quick ratio during that year. The subsequent increase in 2025 helped to partially offset this effect.
- Current Liability Movement
- Current liabilities consistently increased throughout the period, rising from US$1,149.8 million in 2021 to US$2,006.2 million in 2025. This consistent growth in short-term obligations placed downward pressure on the quick ratio, particularly noticeable between 2021 and 2022, and again in 2024.
- Ratio Dynamics
- The decrease in the quick ratio from 2021 to 2022 was primarily driven by a faster rate of growth in current liabilities compared to quick assets. The decline from 2023 to 2024 was attributable to a decrease in quick assets coupled with continued growth in current liabilities. The improvement in 2025 was due to a more substantial increase in quick assets relative to current liabilities.
Despite the fluctuations, the quick ratio remained above 3.00 for the majority of the period, suggesting a generally healthy ability to meet short-term obligations with highly liquid assets. However, the dip to 3.00 in 2024 warrants further investigation to understand the underlying causes and potential implications.
Cash Ratio
Intuitive Surgical Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 3,368,000) | 2,027,400) | 2,750,100) | 1,581,200) | 1,290,900) | |
| Short-term investments | 2,566,900) | 1,985,900) | 2,473,100) | 2,536,700) | 2,913,100) | |
| Total cash assets | 5,934,900) | 4,013,300) | 5,223,200) | 4,117,900) | 4,204,000) | |
| Current liabilities | 2,006,200) | 1,745,300) | 1,658,700) | 1,422,100) | 1,149,800) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.96 | 2.30 | 3.15 | 2.90 | 3.66 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | 0.56 | 0.53 | 0.66 | 0.78 | |
| Elevance Health Inc. | — | 0.85 | 0.87 | 0.86 | 0.95 | |
| Medtronic PLC | 0.70 | 0.74 | 0.88 | 0.85 | 1.27 | |
| UnitedHealth Group Inc. | — | 0.28 | 0.34 | 0.36 | 0.36 | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | — | 0.49 | 0.55 | 0.58 | 0.64 | |
| Cash Ratio, Industry | ||||||
| Health Care | — | 0.46 | 0.50 | 0.54 | 0.60 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,934,900 ÷ 2,006,200 = 2.96
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then increasing again. Total cash assets and current liabilities both increased over the period, but at different rates, influencing the ratio’s movement.
- Cash Ratio Trend
- The cash ratio began at 3.66 in 2021, indicating a strong ability to cover current liabilities with available cash. A decline was observed in 2022, with the ratio falling to 2.90. This suggests a relative decrease in the company’s immediate liquidity. The ratio partially recovered to 3.15 in 2023, but then decreased again to 2.30 in 2024, representing the lowest point in the observed period. A subsequent increase to 2.96 was noted in 2025.
- Total Cash Assets
- Total cash assets experienced an initial decrease from US$4,204,000 thousand in 2021 to US$4,117,900 thousand in 2022. A significant increase to US$5,223,200 thousand occurred in 2023. This was followed by a decrease to US$4,013,300 thousand in 2024, before rising substantially to US$5,934,900 thousand in 2025. These fluctuations in cash holdings likely impacted the cash ratio.
- Current Liabilities
- Current liabilities demonstrated a consistent upward trend throughout the period. Starting at US$1,149,800 thousand in 2021, they increased to US$1,422,100 thousand in 2022, US$1,658,700 thousand in 2023, US$1,745,300 thousand in 2024, and reached US$2,006,200 thousand in 2025. This continuous rise in short-term obligations contributed to the observed changes in the cash ratio.
The interplay between increasing current liabilities and fluctuating cash assets resulted in the observed pattern of the cash ratio. While cash assets generally increased over the period, the growth in current liabilities often outpaced it, particularly between 2022 and 2024, leading to a decrease in the ratio. The substantial increase in cash assets in 2025 helped to offset the continued rise in current liabilities, resulting in an improved ratio.