Acadia Healthcare Company Inc (ACHC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 100,073 | 97,649 | 133,813 | 378,697 | 99,535 |
| Short-term investments | US$ in thousands | — | — | — | — | 24,657 |
| Total current liabilities | US$ in thousands | 885,781 | 388,326 | 404,861 | 1,308,180 | 463,576 |
| Cash ratio | 0.11 | 0.25 | 0.33 | 0.29 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($100,073K
+ $—K)
÷ $885,781K
= 0.11
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
Acadia Healthcare Company Inc's cash ratio has fluctuated over the past five years, ranging from 0.21 to 0.45. The company's cash ratio decreased from 0.35 in 2019 to 0.32 in 2020, suggesting a slight decline in its ability to cover short-term liabilities with cash only. However, the cash ratio improved to 0.45 in 2021, indicating a stronger liquidity position and ability to meet short-term obligations.
In 2022, Acadia Healthcare's cash ratio decreased to 0.38, which was still higher than the ratio in 2020 but lower than the peak in 2021. This suggests a potential decrease in the company's liquidity position compared to the previous year.
The most recent data for 2023 shows a further decline in the cash ratio to 0.21. This decrease may indicate a reduced ability to cover short-term liabilities solely with cash and cash equivalents. It is important for investors and stakeholders to monitor this trend in the company's cash ratio to assess its liquidity position and ability to meet financial obligations in the short term.