Astrana Health Inc (ASTH)
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 | 1.75 | 1.91 | 1.84 | 1.51 | 2.11 | 2.35 | 2.50 | 2.77 | 2.88 | 2.84 | 2.49 | 2.77 | 3.46 | 3.66 | 3.67 | 2.93 | 2.94 | 2.79 | 2.50 | 2.98 |
| Quick ratio | 0.80 | 1.12 | 1.06 | 0.95 | 1.36 | 1.36 | 1.60 | 1.69 | 1.98 | 1.39 | 1.48 | 1.75 | 2.48 | 2.85 | 2.85 | 2.16 | 2.27 | 2.16 | 1.77 | 1.86 |
| Cash ratio | 0.80 | 1.12 | 1.06 | 0.95 | 1.36 | 1.36 | 1.60 | 1.69 | 1.98 | 1.39 | 1.48 | 1.75 | 2.48 | 2.85 | 2.85 | 2.16 | 2.27 | 2.16 | 1.77 | 1.86 |
Based on the provided data, Astrana Health Inc has shown fluctuating liquidity ratios over the reporting periods.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, indicating a healthy liquidity position. However, the ratio started declining from June 2023 onwards, reaching a low of 1.51 by March 31, 2024. This significant drop may raise concerns about the company's ability to meet its current liabilities in the short term.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. Astrana Health Inc's quick ratio has followed a similar trend to the current ratio, staying above 1 in most periods. However, like the current ratio, the quick ratio also declined sharply from March 31, 2024, reaching 0.95 by that date. This decrease may indicate challenges in meeting immediate obligations without relying on inventory liquidation.
The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) to cover current liabilities, has also exhibited a decreasing trend after June 30, 2022. By the end of the reporting period on December 31, 2024, the cash ratio stood at 0.80, reflecting a potential strain on the company's cash resources to meet its short-term obligations.
Overall, the decreasing trend in the current, quick, and cash ratios over the latter part of the reporting period raises concerns about Astrana Health Inc's liquidity position. Management should closely monitor the company's ability to meet its short-term obligations and consider appropriate strategies to strengthen its liquidity position.
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 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Astrana Health Inc remained consistent at 0.00 days for most of the quarters from March 2020 to September 2024. This indicates that the company efficiently manages its working capital by swiftly converting its investments in inventory and other resources into cash from sales. However, there was a slight uptick to 0.12 days in the cash conversion cycle for the quarter ending June 30, 2023, which could suggest a minor delay in the company's cash conversion process during that period. Overall, Astrana Health Inc's ability to maintain a low or zero cash conversion cycle demonstrates effective liquidity management and operational efficiency within the business.