Centene Corp (CNC)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 1.10 | 1.17 | 1.17 | 1.11 | 1.12 | 1.11 | 1.07 | 1.06 | 1.06 | 1.11 | 1.05 | 1.11 | 1.12 | 1.08 | 1.10 | 1.08 | 1.25 | 1.22 | 1.14 |
| Quick ratio | 0.49 | 0.52 | 0.62 | 0.60 | 0.54 | 0.55 | 0.62 | 0.55 | 0.51 | 0.55 | 0.52 | 0.43 | 0.57 | 0.60 | 0.53 | 0.51 | 0.57 | 0.63 | 0.65 | 0.49 |
| Cash ratio | 0.49 | 0.52 | 0.62 | 0.60 | 0.54 | 0.55 | 0.62 | 0.55 | 0.51 | 0.55 | 0.52 | 0.43 | 0.57 | 0.60 | 0.53 | 0.51 | 0.57 | 0.63 | 0.65 | 0.49 |
Centene Corp has shown a relatively stable current ratio over the past few years, ranging from 1.05 to 1.25. This indicates the company's ability to cover its short-term liabilities with its current assets. However, the current ratio dropped slightly at the end of 2021 and remained around 1.1 in 2022 and 2023.
The quick ratio, which excludes inventories from current assets, fluctuated between 0.43 and 0.65 during the same period. This metric measures the company's ability to meet its short-term obligations without relying on the sale of inventory. Centene's quick ratio also experienced a slight decline towards the end of 2021 but recovered to around 0.60 by March 2024.
The cash ratio, reflecting the most conservative liquidity measure, mirrored the trend of the quick ratio, indicating the company's ability to pay off its current liabilities using only cash and cash equivalents. The cash ratio fluctuated between 0.43 and 0.65 during the period under consideration, displaying a similar decline and recovery pattern to the quick ratio.
Overall, Centene Corp has maintained adequate liquidity levels with its current assets covering its short-term obligations. However, the company experienced some fluctuations in liquidity ratios towards the end of 2021, which seemed to have stabilized by the first quarter of 2024.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Centene Corp has consistently maintained a cash conversion cycle of 0.00 days over the years, implying efficient management of its working capital and cash flow. This indicates that the company is able to effectively convert its resources into cash without experiencing delays in the collection of receivables or payments to suppliers. A cash conversion cycle of zero days reflects a well-optimized business operation, where the company is able to swiftly convert its investments into cash, demonstrating strong liquidity and operational efficiency. It suggests that Centene Corp is effectively managing its receivables, payables, and inventory, resulting in a streamlined cash cycle. This stability in the cash conversion cycle indicates a strong financial position and effective working capital management within the company.