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.