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