Centene Corp (CNC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 14,063,000 | 17,193,000 | 12,074,000 | 13,118,000 | 10,800,000 |
| Short-term investments | US$ in thousands | 2,622,000 | 2,459,000 | 2,321,000 | 1,539,000 | 1,580,000 |
| Total current liabilities | US$ in thousands | 34,261,000 | 36,716,000 | 28,464,000 | 25,765,000 | 21,585,000 |
| Cash ratio | 0.49 | 0.54 | 0.51 | 0.57 | 0.57 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($14,063,000K
+ $2,622,000K)
÷ $34,261,000K
= 0.49
The cash ratio for Centene Corp has shown some fluctuations over the past five years, ranging from 0.49 to 0.57. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it suggests a stronger liquidity position.
In this case, Centene Corp's cash ratio has remained relatively stable around the range of 0.51 to 0.57 over the years, with a slight decline observed in 2024 to 0.49. While the company seems to have a reasonable amount of cash to cover its short-term obligations, the decreasing trend in 2024 may warrant further monitoring to ensure that the company maintains adequate liquidity levels.
Overall, a cash ratio of around 0.5 to 0.57 indicates that Centene Corp has a moderate ability to meet its short-term financial obligations using its available cash reserves, but ongoing assessment and management of liquidity will be crucial to ensure financial stability.
Peer comparison
Dec 31, 2024