Acadia Healthcare Company Inc (ACHC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.00 1.07 1.18 1.27 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
Quick ratio 0.13 0.13 0.14 0.16 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
Cash ratio 0.13 0.13 0.14 0.16 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

Acadia Healthcare Company Inc's liquidity ratios have exhibited fluctuations over the past few years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged from as low as 0.67 to as high as 1.93. The current ratio increased significantly in December 2020 but has since fluctuated around 1.30 in recent periods, indicating the company's improved ability to cover its short-term liabilities.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, Acadia Healthcare's ratio has fluctuated between 0.11 and 0.56. The quick ratio has generally remained low, indicating more reliance on inventory to meet short-term obligations. However, it showed some improvement in the December 2021 quarter before declining again.

The cash ratio, reflecting the company's ability to cover its current liabilities with its most liquid assets, has followed a similar trend to the quick ratio, ranging from 0.11 to 0.56. Acadia Healthcare's cash ratio has generally been low, implying a limited ability to cover immediate obligations with cash and cash equivalents.

Overall, Acadia Healthcare Company Inc's liquidity ratios have shown some improvement in managing short-term obligations, as indicated by the current ratio trending above 1. However, the company may still need to focus on strengthening its quick and cash ratios to enhance its liquidity position in the future.


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 1.64 1.12 1.22 1.31 1.35 1.60 1.24 1.24 1.24 1.23 1.27 1.27 1.31 1.20 1.16 1.05 1.02 0.99 0.93 0.96

The cash conversion cycle of Acadia Healthcare Company Inc has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from 0.96 days to 1.64 days.

The company's cash conversion cycle measures the time it takes for Acadia Healthcare to convert its resources invested in inventory and accounts receivable into cash flows from sales. A shorter cash conversion cycle is generally considered favorable as it indicates that the company is efficiently managing its working capital.

Acadia Healthcare's cash conversion cycle has increased gradually over the period, peaking at 1.64 days on December 31, 2024. This could suggest potential inefficiencies in managing inventory or collecting accounts receivable, leading to a longer cycle to convert resources into cash.

It would be beneficial for Acadia Healthcare to analyze the underlying factors contributing to the lengthening of the cash conversion cycle and implement strategies to improve working capital management efficiency, potentially by optimizing inventory levels and enhancing accounts receivable collection processes.