Centene Corp (CNC)

Centene Corp's liquidity ratios show a mixed performance over the years. The current ratio, a measure of the company's ability to cover short-term obligations with its current assets, has been relatively stable, ranging from 1.06 to 1.11. This indicates that Centene has just over $1 in current assets for every $1 in current liabilities, which is generally considered adequate.

On the other hand, both the quick ratio and cash ratio, which provide a more stringent measure of liquidity by excluding inventory from current assets, have shown a decreasing trend. The quick ratio has declined from 0.57 to 0.49, while the cash ratio has also decreased from 0.57 to 0.49. This suggests that Centene may have less liquid assets available to cover its short-term liabilities without relying on inventory.

Overall, while the current ratio remains within an acceptable range, the declining quick ratio and cash ratio raise some concerns about Centene's ability to meet its short-term obligations using its most liquid assets. Management may need to monitor and potentially adjust its cash management strategies to ensure adequate liquidity in the future.

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Additional liquidity measure

Based on the data provided, Centene Corp's cash conversion cycle has consistently been 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company is managing its cash flow efficiently, with minimal time spent in converting its investments in inventory into cash receipts from sales. A cash conversion cycle of 0.00 days suggests that Centene Corp is effectively managing its working capital and operations, ensuring a quick turnover of cash to support its business activities. It also implies that the company has a streamlined process in place for purchasing inventory, selling products, and collecting cash from customers. Overall, Centene Corp's consistent 0.00 days cash conversion cycle reflects strong cash management practices and operational efficiency.