Acadia Healthcare Company Inc (ACHC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 100,073 | 97,649 | 133,813 | 378,697 | 99,535 |
| Short-term investments | US$ in thousands | — | — | — | — | 24,657 |
| Receivables | US$ in thousands | 429,551 | 353,777 | 304,441 | 291,273 | 364,472 |
| Total current liabilities | US$ in thousands | 885,781 | 388,326 | 404,861 | 1,308,180 | 463,576 |
| Quick ratio | 0.60 | 1.16 | 1.08 | 0.51 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($100,073K
+ $—K
+ $429,551K)
÷ $885,781K
= 0.60
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover immediate liabilities.
Analyzing Acadia Healthcare Company Inc's quick ratio over the past five years reveals fluctuations in its liquidity position. In 2023, the quick ratio decreased to 0.65 from 1.27 in 2022, signaling a potential weakening of the company's ability to meet short-term obligations using only its most liquid assets.
Comparing the 2023 quick ratio with the ratios from 2021 (1.17) and 2019 (1.16), it is evident that the company's liquidity has declined significantly. The decrease in the quick ratio from 2022 to 2023 may raise concerns about Acadia Healthcare's short-term liquidity management and ability to cover current liabilities promptly.
Conversely, the quick ratio in 2020 was notably lower at 0.54, suggesting a potential liquidity strain at that time. The substantial improvement in the ratio in 2021 and 2022 indicates that the company took steps to enhance its liquidity position before the recent decline in 2023.
Overall, Acadia Healthcare Company Inc's quick ratio trend indicates fluctuations in its short-term liquidity management over the years, with the recent decline in 2023 deserving further attention and potential analysis into the company's current liquidity position and management strategies.
Peer comparison
Dec 31, 2023