AMN Healthcare Services Inc (AMN)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.09 | 1.18 | 1.23 | 1.27 | 1.28 | 1.18 | 1.20 | 1.33 | 1.27 | 1.35 | 1.24 | 1.29 | 1.39 | 1.40 | 1.36 | 1.39 | 1.26 | 1.33 | 1.35 | 1.61 |
| Quick ratio | 0.02 | 0.06 | 0.24 | 0.23 | 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 |
| Cash ratio | 0.02 | 0.06 | 0.24 | 0.23 | 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 |
AMN Healthcare Services Inc's liquidity ratios have shown fluctuations over the reported periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above the ideal threshold of 1. A decreasing trend in the current ratio from 1.61 on March 31, 2020, to 1.09 on December 31, 2024, suggests a potential weakening of the company's liquidity position.
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 been volatile, with values ranging from 0.02 on December 31, 2024, to 0.42 on March 31, 2020. The decreasing trend observed in the quick ratio indicates a potential risk in the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has also displayed variability over the periods. Similar to the quick ratio, the cash ratio has shown a decreasing trend over time, reaching 0.02 on December 31, 2024, indicating a potential challenge for AMN Healthcare in meeting its immediate obligations with its available cash resources.
Overall, the liquidity ratios of AMN Healthcare Services Inc reflect a mixed performance, with a tendency towards weakening liquidity position as indicated by the declining current, quick, and cash ratios. It may be prudent for the company to closely monitor its liquidity position and consider strategies to enhance its short-term financial health.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6.58 | 0.00 | 4.41 | 6.06 | 8.15 | 13.88 | 6.49 | 7.01 | 8.14 | 8.85 | 7.18 | 7.55 | 8.47 |
AMN Healthcare Services Inc's cash conversion cycle, a metric that measures the time it takes to convert resources into cash flows, experienced fluctuations over the analyzed periods. From March 31, 2020, to June 30, 2021, the company's cash conversion cycle generally decreased, indicating an improvement in efficiency in managing its cash flows. However, in December 31, 2021, there was a significant increase in the cycle to 13.88 days, suggesting potential challenges in converting resources to cash during that period.
Subsequently, from June 30, 2022, to March 31, 2023, the company achieved notably low or even zero days in its cash conversion cycle. This implies a swift conversion of resources into cash, which could be a positive sign of effective cash management during these periods.
From September 30, 2023, to December 31, 2024, the cash conversion cycle remained at zero days, signaling an optimal efficiency in cash management or possibly a change in reporting practices. It is essential for AMN Healthcare to maintain a consistent and efficient cash conversion cycle to ensure liquidity and operational stability in the long run.