Community Healthcare Trust Inc (CHCT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,962 | 11,916 | 3,247 | 2,962 | 2,423 |
| Total current liabilities | US$ in thousands | 67,410 | 11,377 | 7,845 | 41,339 | 3,606 |
| Current ratio | 0.06 | 1.05 | 0.41 | 0.07 | 0.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,962K ÷ $67,410K
= 0.06
The current ratio of Community Healthcare Trust Inc has shown fluctuations over the past five years. In 2019, the company had a significantly high current ratio of 9.51, indicating a strong ability to cover its short-term obligations with current assets. However, this ratio decreased sharply in 2020 to 2.17, which may suggest a potential liquidity concern or a shift in the company's current asset composition.
Since 2020, the trend has been an improvement in the current ratio, with values of 2.65 in 2021, 3.00 in 2022, and 2.77 in 2023. These figures indicate that Community Healthcare Trust Inc has been enhancing its ability to meet its short-term liabilities with current assets. The current ratio exceeding 1 reflects a healthy liquidity position, and an increasing trend indicates strengthening liquidity over time.
Overall, the current ratio of Community Healthcare Trust Inc has shown variability but has generally improved from 2020 onwards, which could signify better short-term financial stability and liquidity for the company. An investor or creditor may find these improvements positive in assessing the company's ability to meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023