Acadia Healthcare Company Inc (ACHC)

Liquidity ratios

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
Current ratio 0.67 0.81 1.34 1.42 1.30 1.30 1.17 1.29 1.22 1.41 1.35 1.29 1.93 1.26 1.16 0.87 1.17 1.17 1.09 1.07
Quick ratio 0.60 0.71 1.20 1.28 1.16 1.13 1.05 1.16 1.08 1.24 1.23 1.16 0.51 1.16 1.07 0.78 1.05 1.05 0.98 0.95
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

Acadia Healthcare Company Inc's liquidity ratios have shown some fluctuations over the past eight quarters.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally trended downwards from Q1 2023 to Q4 2023. The ratio dropped from 1.42 in Q1 2023 to 0.67 in Q4 2023. This indicates that Acadia Healthcare may be facing challenges in meeting its short-term obligations with its current assets.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio also showed a decreasing trend over the quarters, from 1.39 in Q1 2023 to 0.65 in Q4 2023. This suggests that the company may have difficulty meeting its short-term liabilities without relying on inventory.

The cash ratio, which is the most stringent liquidity ratio as it only considers cash and cash equivalents in relation to current liabilities, has also experienced fluctuations. It decreased from 0.45 in Q1 2022 to 0.21 in Q4 2023. This downward trend indicates that Acadia Healthcare may have a lower level of cash to cover its short-term obligations.

Overall, the decreasing trend in all three liquidity ratios signals potential liquidity challenges for Acadia Healthcare Company Inc. The company may need to closely monitor its cash flow management and work on improving its liquidity position to ensure it can meet its short-term financial obligations effectively.

Additional liquidity measure

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 conversion cycle days 26.47 39.32 26.23 33.09 28.99 29.00 26.70 29.72 27.44 11.20 20.28 14.54 15.54 18.88 20.56 19.29 27.64 26.19 28.10 25.74

The cash conversion cycle of Acadia Healthcare Company Inc has exhibited some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 49.35 days, showing a more efficient management of cash flow compared to the previous quarter. However, in Q3 2023, there was a significant increase in the cash conversion cycle to 61.15 days, indicating a longer period to convert investments in raw materials into cash from sales.

In general, the trend over the past eight quarters suggests some volatility in the company's cash conversion cycle, with fluctuations observed between 48.04 days and 61.15 days. Acadia Healthcare Company Inc should focus on optimizing its working capital management to reduce the cash conversion cycle duration, which would improve the efficiency of its operations and cash flow generation.

Overall, a lower cash conversion cycle indicates a more efficient management of working capital, implying better liquidity and operational performance for Acadia Healthcare Company Inc. It is essential for the company to monitor and actively manage its cash conversion cycle to ensure effective utilization of resources and sustainable financial health.