Astrana Health Inc (ASTH)

Based on the liquidity ratios of Astrana Health Inc over the past five years, we observe the following trends:

1. Current Ratio:
The current ratio measures the company's ability to pay its short-term obligations with its current assets. Astrana Health Inc's current ratio has shown a declining trend over the past five years, from 3.46 in 2021 to 2.11 in 2023. Although the current ratio has decreased, it remains above 1, indicating that the company has more current assets than current liabilities to meet its short-term obligations.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Astrana Health Inc's quick ratio has fluctuated over the years, with a significant decrease from 3.54 in 2021 to 1.41 in 2023. A quick ratio above 1 suggests that the company can cover its short-term liabilities without relying on selling inventory.

3. Cash Ratio:
The cash ratio is the most conservative liquidity measure, focusing solely on the company's ability to cover its current liabilities with cash and cash equivalents. Astrana Health Inc's cash ratio has also shown variation, with a decreasing trend from 2.73 in 2021 to 1.36 in 2023. A cash ratio above 1 indicates that the company has sufficient cash reserves to meet its short-term obligations.

Overall, while the liquidity ratios of Astrana Health Inc have experienced fluctuations over the years, the company has generally maintained a healthy liquidity position, with current, quick, and cash ratios consistently above 1. However, the declining trend in these ratios over the past few years may warrant further monitoring to ensure the company's continued ability to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of Astrana Health Inc has varied significantly over the past five years. In 2023, the company's cash conversion cycle was 3.20 days, showing a substantial improvement from the previous years. This indicates that Astrana Health Inc was able to efficiently convert its investments in inventory and accounts receivable into cash during 2023.

In 2022, the cash conversion cycle spiked to an exceptionally high level of 24,005.62 days, which is likely an outlier or data error considering the impracticality of such a prolonged cash conversion cycle. This exceptional figure significantly distorts the trend analysis of the company's cash conversion cycle over the period.

In prior years, Astrana Health Inc demonstrated a mixed performance in managing its cash conversion cycle. In 2021, the cycle was relatively short at 39.00 days, suggesting efficient management of working capital. The company further improved its performance in 2020 with a cash conversion cycle of 22.55 days and slightly worsened in 2019 to 60.05 days.

Overall, the drastic variation in the cash conversion cycle of Astrana Health Inc over the years may indicate fluctuations in operational efficiency, management of inventory, and collection of receivables. Further investigation into the anomalous data point in 2022 would be necessary to provide a more accurate assessment of the company's working capital management.