Adapthealth Corp (AHCO)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 77,132 46,272 149,627 99,962 76,878
Short-term investments US$ in thousands 5,748 0
Total current liabilities US$ in thousands 536,999 456,214 499,812 422,053 154,052
Cash ratio 0.14 0.11 0.30 0.24 0.50

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($77,132K + $—K) ÷ $536,999K
= 0.14

The cash ratio of AdaptHealth Corp has fluctuated over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In 2023, the cash ratio was 0.27, indicating that the company had $0.27 in cash and cash equivalents for every $1 of current liabilities. This shows a slight improvement from 2022 when the ratio was 0.22. However, the current ratio remains lower than in 2021, where it was 0.37.

The decreasing trend in the cash ratio from 2020 (0.32) to 2019 (0.59) may signal a potential concern as the company had less cash available relative to its short-term obligations in those years.

Overall, while the cash ratio for 2023 shows a slight improvement over the previous year, it is important for AdaptHealth Corp to closely monitor its cash position to ensure it can meet its near-term financial obligations effectively.


Peer comparison

Dec 31, 2023