Community Healthcare Trust Inc (CHCT)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,491 | 3,885 | 2,627 | 3,666 | 11,233 | 2,656 | 1,699 | 1,178 | 2,351 | 1,641 | 4,787 | 5,605 | 2,483 | 12,158 | 4,896 | 3,326 | 1,730 | 1,724 | 9,031 | 3,868 |
| Short-term investments | US$ in thousands | — | 29,038 | 23,085 | 16,397 | 22,667 | 21,468 | 12,761 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 67,410 | 68,193 | 31,240 | 10,478 | 11,377 | 68,892 | 49,186 | 26,754 | 7,845 | 14,690 | 15,371 | 13,526 | 41,339 | 5,800 | 23,497 | 29,297 | 3,606 | 40,254 | 22,395 | 3,351 |
| Quick ratio | 0.05 | 0.48 | 0.82 | 1.91 | 2.98 | 0.35 | 0.29 | 0.04 | 0.30 | 0.11 | 0.31 | 0.41 | 0.06 | 2.10 | 0.21 | 0.11 | 0.48 | 0.04 | 0.40 | 1.15 |
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, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. It is calculated by dividing current assets excluding inventory by current liabilities. A quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term obligations.
Community Healthcare Trust Inc's quick ratio has fluctuated over the past eight quarters. In Q4 2023, the company's quick ratio was 1.15, showing an improvement from the previous quarter's 1.10. This suggests that the company had $1.15 of liquid assets available to cover each dollar of current liabilities at the end of Q4 2023.
Looking at the trend over the quarters, there was a significant increase in the quick ratio from Q4 2022 to Q1 2023, reaching a peak of 1.36. However, the ratio decreased in the following quarters before showing a slight improvement in Q4 2023.
While a quick ratio above 1 generally indicates good liquidity, it is essential to consider the industry and company-specific factors when interpreting this ratio. In the case of Community Healthcare Trust Inc, the recent quick ratio levels suggest that the company has maintained a relatively healthy liquidity position to meet its short-term obligations. It is advisable for investors and analysts to monitor this ratio alongside other financial metrics to assess the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2023