AMN Healthcare Services Inc (AMN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.48 | 1.47 | 1.55 | 1.47 |
| Quick ratio | 1.11 | 0.94 | 0.98 | 0.98 | 0.94 | 1.06 | 0.96 | 1.01 | 1.07 | 1.20 | 1.16 | 1.17 | 1.12 | 1.22 | 1.21 | 1.43 | 1.33 | 1.33 | 1.45 | 1.34 |
| 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 |
AMN Healthcare Services Inc.'s liquidity ratios provide insights into the company's ability to meet its short-term financial obligations. The current ratio has been fluctuating over the quarters, ranging from 1.18 to 1.33, indicating that the company has sufficient current assets to cover its current liabilities. However, a downward trend in the current ratio from Q1 to Q3 of 2023 may raise concerns about the company's short-term liquidity position.
The quick ratio paints a similar picture, showing a slight decrease in liquidity compared to the current ratio. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The quick ratio has varied between 1.14 and 1.29, indicating that the company may face some challenges in meeting its immediate liabilities without relying on inventory.
The cash ratio, which represents the company's ability to cover current liabilities with its cash and cash equivalents, has been relatively low, ranging from 0.06 to 0.16. A decreasing trend in the cash ratio from Q2 to Q3 of 2023 suggests that the company may have limited cash on hand to address short-term obligations.
In summary, AMN Healthcare Services Inc.'s liquidity ratios suggest that while the company has generally been able to meet its short-term obligations, there are signs of potential liquidity challenges, particularly in terms of cash availability. Monitoring these ratios closely can help investors and stakeholders assess the company's liquidity position and its ability to withstand short-term financial pressures.
Additional liquidity measure
| 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 conversion cycle | days | 25.08 | 14.92 | 18.21 | 16.89 | 10.20 | 17.12 | 23.00 | 39.18 | 39.29 | 34.56 | 29.00 | 43.49 | 38.32 | 27.64 | 32.11 | 27.76 | 29.79 | 34.66 | 41.33 | 32.69 |
To analyze AMN Healthcare Services Inc.'s cash conversion cycle over the past eight quarters, we observe an overall decreasing trend. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales.
In Q1 2022, the cash conversion cycle peaked at 89.31 days, indicating a longer period of time for the company to realize cash from its operations. However, from Q2 2022 to Q3 2023, there was a consistent decline in the cash conversion cycle, reaching its lowest point at 55.51 days in Q2 2023.
The decreasing trend suggests that AMN Healthcare Services Inc. has been able to manage its working capital more efficiently, potentially speeding up the collection of receivables or the turnover of inventory. This can lead to improved liquidity and operational efficiency for the company.
Overall, the trend in the cash conversion cycle indicates positive management of the company's working capital and operational processes over the analyzed period. Continued monitoring of this metric will be essential to ensure sustained efficiency in cash flow management.