Centene Corp (CNC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 40,756,000 | 30,128,000 | 28,497,000 | 23,393,000 | 20,323,000 |
| Total current liabilities | US$ in thousands | 36,716,000 | 28,464,000 | 25,765,000 | 21,585,000 | 12,932,000 |
| Current ratio | 1.11 | 1.06 | 1.11 | 1.08 | 1.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $40,756,000K ÷ $36,716,000K
= 1.11
The current ratio of Centene Corp. has fluctuated over the past five years. The ratio stood at 1.11 at the end of 2023, which indicates that the company had $1.11 in current assets to cover each dollar of current liabilities. This suggests that Centene Corp. may have a relatively healthy liquidity position in the most recent year.
Comparing this to the previous years, the current ratio was 1.06 in 2022, 1.11 in 2021, 1.08 in 2020, and a higher 1.57 in 2019. The ratios for 2023 and 2021 are comparable, showing consistency in the company's ability to meet its short-term obligations. However, the lower ratios in 2022 and 2020 indicate a slightly tighter liquidity position in those years.
It is important to note that while a current ratio above 1.0 generally signifies that a company can cover its short-term liabilities with its current assets, a ratio that is too high may indicate inefficiency in asset utilization. Centene Corp.'s current ratio trend over the past five years suggests some variability in its liquidity position, and further analysis of the company's financial health and operational efficiency would provide a more holistic view.
Peer comparison
Dec 31, 2023