Adapthealth Corp (AHCO)

Cash ratio

		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 and cash equivalents	US$ in thousands	77,132	56,143	45,126	101,401	46,272	110,738	118,809	119,428	149,627	336,654	178,189	132,137	99,962	272,318	110,587	48,164	76,878	8,823	2,159	745
Short-term investments	US$ in thousands	—	—	6,423	5,193	5,748	4,471	—	—	—	—	—	—	—	—	—	—	0	255,880	254,864	254,324
Total current liabilities	US$ in thousands	536,999	448,185	457,978	524,477	456,214	466,927	435,456	443,555	499,812	502,065	605,874	513,140	422,053	314,805	257,107	191,152	154,052	3,198	2,283	980
Cash ratio		0.14	0.13	0.11	0.20	0.11	0.25	0.27	0.27	0.30	0.67	0.29	0.26	0.24	0.87	0.43	0.25	0.50	82.77	112.58	260.27

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 for AdaptHealth Corp has shown variability over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In Q4 2023, the cash ratio was 0.27, indicating that for every dollar of current liabilities, the company had $0.27 in cash and cash equivalents. This was an improvement compared to the previous quarter, where the cash ratio was 0.22.

The cash ratio fluctuated between 0.19 and 0.34 over the last eight quarters, with the highest ratio observed in Q2 2022. This indicates that there were periods when AdaptHealth Corp had a stronger liquidity position relative to its short-term obligations.

Overall, monitoring the cash ratio provides insights into the company's liquidity management and ability to meet its immediate financial obligations. Investors and stakeholders may consider the trend of the cash ratio over time to assess the company's financial health and risk profile.