Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Edwards Lifesciences Corp., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 3.08 | 3.46 | 3.31 | 2.61 | 1.80 | |
| Quick ratio | 2.07 | 2.24 | 2.34 | 1.70 | 1.28 | |
| Cash ratio | 1.42 | 1.57 | 1.68 | 1.09 | 0.95 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Edwards Lifesciences Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Edwards Lifesciences Corp. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Edwards Lifesciences Corp. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
Edwards Lifesciences Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 3,180,700) | 3,091,000) | 2,984,000) | 2,286,900) | 2,532,100) | |
| Current liabilities | 1,032,300) | 893,900) | 902,400) | 876,600) | 1,402,900) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 3.08 | 3.46 | 3.31 | 2.61 | 1.80 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.85 | 1.72 | — | — | — | |
| Cigna Group | 0.83 | 0.77 | — | — | — | |
| CVS Health Corp. | 0.88 | 0.91 | — | — | — | |
| Elevance Health Inc. | 1.47 | 1.55 | — | — | — | |
| Intuitive Surgical Inc. | 5.08 | 6.86 | — | — | — | |
| Medtronic PLC | 2.65 | 2.13 | 2.59 | — | — | |
| UnitedHealth Group Inc. | 0.79 | 0.74 | — | — | — | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.06 | 1.04 | — | — | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.21 | 1.20 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,180,700 ÷ 1,032,300 = 3.08
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. | Edwards Lifesciences Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Edwards Lifesciences Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 862,800) | 1,183,200) | 1,179,100) | 714,100) | 818,300) | |
| Short-term investments | 604,000) | 219,400) | 337,800) | 242,400) | 519,200) | |
| Accounts receivable, net of allowances | 582,200) | 514,600) | 543,600) | 456,900) | 421,600) | |
| Other receivables | 82,700) | 88,200) | 55,500) | 80,400) | 40,600) | |
| Total quick assets | 2,131,700) | 2,005,400) | 2,116,000) | 1,493,800) | 1,799,700) | |
| Current liabilities | 1,032,300) | 893,900) | 902,400) | 876,600) | 1,402,900) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 2.07 | 2.24 | 2.34 | 1.70 | 1.28 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.28 | 1.14 | — | — | — | |
| Cigna Group | 0.48 | 0.66 | — | — | — | |
| CVS Health Corp. | 0.55 | 0.53 | — | — | — | |
| Elevance Health Inc. | 1.33 | 1.42 | — | — | — | |
| Intuitive Surgical Inc. | 4.34 | 5.96 | — | — | — | |
| Medtronic PLC | 1.91 | 1.50 | 1.90 | — | — | |
| UnitedHealth Group Inc. | 0.72 | 0.68 | — | — | — | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.80 | 0.82 | — | — | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.89 | 0.89 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,131,700 ÷ 1,032,300 = 2.07
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. | Edwards Lifesciences Corp. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash Ratio
Edwards Lifesciences Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 862,800) | 1,183,200) | 1,179,100) | 714,100) | 818,300) | |
| Short-term investments | 604,000) | 219,400) | 337,800) | 242,400) | 519,200) | |
| Total cash assets | 1,466,800) | 1,402,600) | 1,516,900) | 956,500) | 1,337,500) | |
| Current liabilities | 1,032,300) | 893,900) | 902,400) | 876,600) | 1,402,900) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.42 | 1.57 | 1.68 | 1.09 | 0.95 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.78 | 0.60 | — | — | — | |
| Cigna Group | 0.14 | 0.32 | — | — | — | |
| CVS Health Corp. | 0.18 | 0.18 | — | — | — | |
| Elevance Health Inc. | 0.95 | 1.04 | — | — | — | |
| Intuitive Surgical Inc. | 3.66 | 5.30 | — | — | — | |
| Medtronic PLC | 1.27 | 1.06 | 1.16 | — | — | |
| UnitedHealth Group Inc. | 0.36 | 0.33 | — | — | — | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.43 | 0.45 | — | — | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.50 | 0.51 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,466,800 ÷ 1,032,300 = 1.42
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. | Edwards Lifesciences Corp. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |