Adapthealth Corp (AHCO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 109,747 | 77,132 | 46,272 | 149,627 | 99,962 |
| Short-term investments | US$ in thousands | — | 4,482 | 5,748 | — | — |
| Receivables | US$ in thousands | 449,619 | 457,310 | 397,746 | 383,696 | 191,265 |
| Total current liabilities | US$ in thousands | 566,987 | 536,999 | 456,214 | 499,812 | 422,053 |
| Quick ratio | 0.99 | 1.00 | 0.99 | 1.07 | 0.69 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($109,747K
+ $—K
+ $449,619K)
÷ $566,987K
= 0.99
The quick ratio for Adapthealth Corp has shown variability over the years. As of December 31, 2020, the quick ratio was 0.69, indicating a relatively low level of liquidity and potential difficulty in meeting short-term obligations with its most liquid assets.
However, there has been a noticeable improvement in the company's liquidity position in subsequent years. By December 31, 2021, the quick ratio had increased to 1.07, suggesting a healthier liquidity position and a better ability to cover short-term liabilities using its quick assets.
The trend continued to be positive in the following years, with the quick ratio hovering around 1.00. This indicates that Adapthealth Corp has been able to maintain a satisfactory level of liquidity, allowing it to comfortably meet its short-term financial obligations.
Overall, the trend in Adapthealth Corp's quick ratio reflects an improvement in its liquidity position, providing increased confidence in the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024