Cross Country Healthcare Inc (CCRN)

Cross Country Healthcares, Inc. has shown a consistent improvement in its liquidity ratios over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has steadily increased from 2.15 in 2019 to 2.79 in 2023. This indicates that the company has a sufficient level of current assets to cover its current liabilities.

The quick ratio, also known as the acid-test ratio, reflects the company's ability to meet its short-term obligations without relying on inventory. Cross Country Healthcares, Inc. has maintained a consistent quick ratio of 2.79 over the past five years. This suggests that the company has a strong ability to cover its short-term liabilities with its most liquid assets.

The cash ratio, which indicates the extent to which cash and cash equivalents can cover current liabilities, has shown significant improvement over the years. From 0.10 in 2019, the ratio has increased to 0.23 in 2023. This indicates that the company has a higher proportion of cash to meet its short-term obligations, providing a strong safety net in case of financial difficulties.

Overall, Cross Country Healthcares, Inc. has demonstrated a solid liquidity position, with increasing current and cash ratios over the years. This indicates the company's ability to efficiently manage its short-term financial obligations and suggests a stable financial position.

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Additional liquidity measure

The cash conversion cycle of Cross Country Healthcares, Inc. has shown fluctuations over the past five years, indicating varying efficiency in managing its working capital.

In 2023, the cash conversion cycle decreased to 68.93 days from 84.41 days in 2022. This suggests an improvement in the company's ability to convert its resources into cash within a shorter period, potentially due to more effective inventory management or quicker collection of accounts receivable.

Comparing 2023 to 2021 and 2019, where the cash conversion cycle was 108.62 days and 77.48 days respectively, Cross Country Healthcares, Inc. has shown a mixed performance. Even though the cycle decreased in 2023 compared to 2021, it is still higher than the level seen in 2019, signifying potential inefficiencies in managing cash flow compared to previous years.

Overall, the trend in the cash conversion cycle for Cross Country Healthcares, Inc. indicates fluctuations in working capital management efficiency over the years, highlighting the company's need to focus on optimizing its cash conversion processes for sustained financial health.