Community Healthcare Trust Inc (CHCT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,491 | 11,233 | 2,351 | 2,483 | 1,730 |
| Short-term investments | US$ in thousands | — | 22,667 | 343 | — | — |
| Total current liabilities | US$ in thousands | 67,410 | 11,377 | 7,845 | 41,339 | 3,606 |
| Cash ratio | 0.05 | 2.98 | 0.34 | 0.06 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,491K
+ $—K)
÷ $67,410K
= 0.05
The cash ratio of Community Healthcare Trust Inc has been relatively stable over the past five years, ranging from 0.04 to 0.14. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher ratio indicates a greater ability to meet short-term obligations without relying on external sources of funding.
In this case, the cash ratio has declined steadily from 0.14 in 2019 to 0.06 in 2023. This decreasing trend suggests that the company may be holding less cash relative to its short-term liabilities over the years. While a decreasing cash ratio could indicate a potential liquidity risk, it is important to analyze other financial metrics and factors to fully assess the company's financial health.
It is advisable for stakeholders to monitor the trend of the cash ratio and investigate the reasons behind the declining ratio to ensure that Community Healthcare Trust Inc maintains a healthy level of liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023