AMN Healthcare Services Inc (AMN)

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	32,935	29,377	7,013	28,516	64,524	155,723	79,357	113,482	180,928	137,041	139,494	78,325	29,213	58,419	43,067	97,509	82,985	40,748	20,937	19,116
Short-term investments	US$ in thousands	68,845	69,995	71,564	67,594	61,218	64,883	61,744	65,904	64,482	63,603	63,441	62,319	61,347	60,898	56,362	60,873	62,170	59,165	65,919	61,279
Total current liabilities	US$ in thousands	656,121	707,126	673,715	803,601	857,933	891,246	957,379	1,147,580	969,390	641,186	582,563	598,994	422,957	386,168	384,536	373,060	378,105	343,909	316,824	333,270
Cash ratio		0.16	0.14	0.12	0.12	0.15	0.25	0.15	0.16	0.25	0.31	0.35	0.23	0.21	0.31	0.26	0.42	0.38	0.29	0.27	0.24

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,935K + $68,845K) ÷ $656,121K
= 0.16

The cash ratio measures the ability of a company to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet immediate obligations.

Based on the data provided for AMN Healthcare Services Inc., the cash ratio has varied over the past eight quarters. In Q4 2022, the company had a relatively high cash ratio of 0.12, indicating a strong cash position compared to its short-term liabilities. However, this ratio declined in subsequent quarters, reaching its lowest point of 0.06 in Q2 2023.

While the cash ratio increased to 0.11 in Q4 2023, it remains lower than the ratio observed in the prior year. This downward trend in the cash ratio may signal potential liquidity challenges for AMN Healthcare Services Inc. in meeting its short-term obligations using cash alone.

Overall, the fluctuating cash ratio of AMN Healthcare Services Inc. suggests a need for monitoring the company's liquidity position closely to ensure it can effectively manage its short-term financial commitments.