Acadia Healthcare Company Inc (ACHC)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 100,073 | 99,591 | 112,173 | 63,829 | 97,649 | 93,419 | 128,368 | 140,367 | 133,813 | 196,313 | 185,546 | 178,915 | 378,697 | 338,702 | 211,939 | 81,004 | 99,535 | 92,900 | 43,541 | 43,684 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 24,657 | — | — | — |
| Total current liabilities | US$ in thousands | 885,781 | 864,890 | 432,482 | 378,129 | 388,326 | 401,013 | 441,653 | 410,751 | 404,861 | 403,292 | 425,215 | 410,979 | 1,308,180 | 601,339 | 527,364 | 579,584 | 463,576 | 458,206 | 430,688 | 424,671 |
| Cash ratio | 0.11 | 0.12 | 0.26 | 0.17 | 0.25 | 0.23 | 0.29 | 0.34 | 0.33 | 0.49 | 0.44 | 0.44 | 0.29 | 0.56 | 0.40 | 0.14 | 0.27 | 0.20 | 0.10 | 0.10 |
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 of Acadia Healthcare Company Inc has shown some fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q1 2022, the cash ratio was 0.45, indicating that the company had $0.45 in cash and cash equivalents for every $1 of current liabilities. This high ratio suggests a strong liquidity position at the beginning of the period. However, over the subsequent quarters, the cash ratio declined gradually, reaching its lowest point of 0.21 in Q4 2023.
The decreasing trend in the cash ratio raises some concerns about the company's ability to meet its short-term obligations with its existing cash reserves. A lower cash ratio may indicate potential liquidity challenges or a need to improve cash management practices.
It is essential for Acadia Healthcare Company Inc to closely monitor its cash position and liquidity management strategies to ensure it can effectively meet its short-term financial commitments and maintain financial stability in the long run.