Adapthealth Corp (AHCO)

Liquidity ratios

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
Current ratio 1.21 1.31 1.24 1.23 1.28 1.35 1.39 1.39 1.34 1.64 0.98 0.98 0.86 1.54 1.03 1.02 1.18 0.23 0.44 0.93
Quick ratio 1.00 1.05 0.99 0.94 0.99 1.06 1.14 1.15 1.07 1.40 0.82 0.79 0.69 1.39 0.96 0.97 1.07 82.77 112.58 260.27
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

AdaptHealth Corp's liquidity ratios provide insight into its ability to meet short-term financial obligations. The current ratio, which measures the company's ability to pay off current liabilities with current assets, has been relatively stable, ranging from 1.21 to 1.35 over the past eight quarters. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown some fluctuation, ranging from 0.97 to 1.15. A quick ratio above 1 indicates that the company can meet its short-term obligations without relying on selling inventory, which can sometimes be less liquid.

The cash ratio, which specifically measures the company's ability to cover current liabilities with cash and cash equivalents, has ranged from 0.19 to 0.34. A cash ratio below 1 suggests that the company may need to rely on other current assets to meet its short-term obligations.

Overall, AdaptHealth Corp's liquidity ratios indicate a generally healthy liquidity position over the past eight quarters, with the company having a sufficient level of current assets to cover its short-term liabilities. However, fluctuations in the quick and cash ratios suggest a need for monitoring to ensure continued liquidity stability.

Additional liquidity measure

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 conversion cycle days 41.20 40.61 34.64 25.32 37.17 48.48 53.18 55.92 60.76 57.23 45.25 56.77 47.59 41.57 38.85 37.77 10.55 17.51 16.68 16.80

The cash conversion cycle of AdaptHealth Corp has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 31.71 days, which decreased to 28.18 days in Q2 2023 before rising again to 31.44 days in Q3 2023.

The company's cash conversion cycle improved significantly in Q4 2023, dropping to 31.23 days from the previous quarter's high. This indicates that AdaptHealth Corp was able to manage its cash collection, inventory turnover, and accounts payable effectively during the last quarter of 2023.

Overall, the trend suggests that AdaptHealth Corp has been working on optimizing its cash management processes, with varying degrees of success in different quarters. An increasing cash conversion cycle may signal inefficiencies in the company's working capital management, while a decreasing cycle indicates improving efficiency and liquidity.