AMN Healthcare Services Inc (AMN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,649 | 32,935 | 64,524 | 180,928 | 29,213 |
| Short-term investments | US$ in thousands | — | 68,845 | 61,218 | 64,482 | 61,347 |
| Total current liabilities | US$ in thousands | 545,785 | 656,121 | 857,933 | 969,390 | 422,957 |
| Cash ratio | 0.02 | 0.16 | 0.15 | 0.25 | 0.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,649K
+ $—K)
÷ $545,785K
= 0.02
The cash ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations using its available cash and cash equivalents. Based on the data provided for AMN Healthcare Services Inc, the cash ratio has fluctuated over the five-year period.
As of December 31, 2020, AMN Healthcare had a cash ratio of 0.21, indicating that the company had 21 cents in cash and cash equivalents for every dollar of current liabilities. This suggests a moderate ability to cover short-term obligations with readily available funds.
By December 31, 2021, the cash ratio improved to 0.25, signaling an increase in the company's liquidity position. This indicates an enhanced ability to meet short-term obligations using cash and cash equivalents.
However, the cash ratio decreased to 0.15 by December 31, 2022, followed by a slight increase to 0.16 by the end of 2023. These figures suggest a decline in liquidity compared to the previous year, which may warrant further examination of the company's cash management and short-term financial health.
By December 31, 2024, the cash ratio dropped significantly to 0.02, indicating a substantial decrease in the company's ability to cover short-term obligations with its available cash and cash equivalents. This notable decline may raise concerns about AMN Healthcare's liquidity position and its capacity to meet immediate financial obligations effectively.
Overall, the analysis of AMN Healthcare Services Inc's cash ratio reflects varying levels of liquidity over the five-year period, highlighting the importance of monitoring the company's cash management practices and financial health to ensure sustainable operational performance.
Peer comparison
Dec 31, 2024