Centene Corp (CNC)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 17,193,000 12,074,000 13,118,000 10,800,000 12,123,000
Short-term investments US$ in thousands 2,459,000 2,321,000 1,539,000 1,580,000 863,000
Total current liabilities US$ in thousands 36,716,000 28,464,000 25,765,000 21,585,000 12,932,000
Cash ratio 0.54 0.51 0.57 0.57 1.00

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($17,193,000K + $2,459,000K) ÷ $36,716,000K
= 0.54

The cash ratio of Centene Corp. has shown some fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

In 2023, the cash ratio improved to 0.22 from 0.17 in 2022, signaling an increase in the company's liquidity position. This could be seen as a positive development as it suggests that Centene Corp. has more cash on hand relative to its current liabilities, potentially enhancing its ability to meet its short-term financial obligations.

Comparing 2023 to 2021 and 2020, where the cash ratio was 0.12 and 0.13 respectively, the current liquidity position appears to be stronger. However, it is worth noting a slight decrease from the ratio in 2019, which stood at 0.15. This indicates that Centene Corp. may have had a relatively higher level of cash reserves in 2019 compared to the most recent year.

Overall, while the cash ratio of Centene Corp. has fluctuated over the past five years, the latest ratio of 0.22 suggests an improvement in the company's ability to cover its short-term obligations with cash holdings.