Cross Country Healthcare Inc (CCRN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	17,094	3,604	1,036	1,600	1,032
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	393,871	663,134	500,856	176,401	176,313
Total current liabilities	US$ in thousands	148,587	271,640	199,770	93,423	85,465
Quick ratio		2.77	2.45	2.51	1.91	2.08

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($17,094K + $—K + $393,871K) ÷ $148,587K
= 2.77

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. For Cross Country Healthcares, Inc., the quick ratio has exhibited fluctuations over the last five years.

In 2023, the quick ratio increased to 2.79 from 2.49 in 2022, indicating an improvement in the company's short-term liquidity position. This suggests that Cross Country Healthcares may be better equipped to cover its current liabilities with its quick assets such as cash, marketable securities, and accounts receivable.

Comparing the quick ratio of 2023 to that of 2020 and 2019, which were 1.96 and 2.15, respectively, we observe a significant enhancement in the company's liquidity position over the last three years. This positive trend implies that Cross Country Healthcares has been able to strengthen its ability to meet its short-term obligations efficiently.

Despite the increase in the quick ratio from 2022 to 2023, investors and creditors should continue monitoring this ratio to ensure that Cross Country Healthcares, Inc. maintains a healthy liquidity position in the future, as unexpected changes in market conditions can impact the company's ability to convert its current assets into cash quickly.