Community Healthcare Trust Inc (CHCT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,491 | 11,233 | 2,351 | 2,483 | 1,730 |
| Short-term investments | US$ in thousands | — | 22,667 | 343 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 67,410 | 11,377 | 7,845 | 41,339 | 3,606 |
| Quick ratio | 0.05 | 2.98 | 0.34 | 0.06 | 0.48 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,491K
+ $—K
+ $—K)
÷ $67,410K
= 0.05
The quick ratio of Community Healthcare Trust Inc has fluctuated over the past five years.
In 2019, the quick ratio was relatively high at 2.43, indicating the company had a strong ability to meet its short-term obligations using its most liquid assets.
However, in 2020, the quick ratio dropped to 0.84, suggesting a potential liquidity strain in meeting short-term obligations. This could be concerning as it indicates a decline in the company's ability to cover immediate liabilities without relying on inventory.
In 2021 and 2022, the quick ratio remained stable at 0.91, reflecting a consistent but still low level of liquidity. This may indicate that the company continued to struggle with its short-term financial obligations.
By the end of 2023, the quick ratio improved to 1.15, showing an increase in liquidity compared to the prior years. This suggests that Community Healthcare Trust Inc was better positioned to cover its short-term liabilities using its quick assets.
Overall, while there have been fluctuations in the quick ratio over the years, the recent improvement in 2023 indicates a positive trend towards stronger liquidity management by the company.
Peer comparison
Dec 31, 2023