AMN Healthcare Services Inc (AMN)

AMN Healthcare Services Inc.'s liquidity ratios have shown fluctuations over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has hovered around 1.25 to 1.48 during this period. This indicates that AMN Healthcare has generally had enough current assets to cover its current liabilities, with a slight decrease in 2023 compared to 2022.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. AMN Healthcare's quick ratio has ranged from 1.22 to 1.43 over the past five years, suggesting that the company has a relatively stable ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio, measures the proportion of current liabilities that can be covered by cash and cash equivalents alone. AMN Healthcare's cash ratio has varied significantly, declining from 0.29 in 2019 to 0.11 in 2023. A decrease in the cash ratio may indicate a decreased ability to pay off immediate liabilities using only cash resources.

Overall, while AMN Healthcare Services Inc. has shown consistent current and quick ratios over the years, the significant decrease in the cash ratio from 2019 to 2023 warrants further monitoring to ensure the company's ability to meet its short-term obligations remains stable.

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Additional liquidity measure

The cash conversion cycle of AMN Healthcare Services Inc. has fluctuated over the past five years, with a range from 58.28 days to 83.70 days. In 2021, the company experienced a longer cash conversion cycle of 83.70 days compared to the previous and subsequent years. This indicates that it took AMN Healthcare Services Inc. longer to convert its investments in inventory and accounts receivable into cash during that period.

In 2022, the cash conversion cycle improved to 58.28 days, suggesting that the company managed its inventory and accounts receivable more efficiently, resulting in a quicker conversion to cash. However, in 2023, the cycle increased to 64.13 days, indicating a slight deterioration in conversion efficiency compared to the prior year.

Overall, AMN Healthcare Services Inc. should aim to maintain a lower cash conversion cycle to enhance its liquidity position and operational efficiency. Further analysis of the components of the cash conversion cycle, such as inventory turnover and accounts receivable collection, would provide insights into specific areas for improvement.