Centene Corp (CNC)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.57 | 1.01 | 1.07 | 1.04 |
| Quick ratio | 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 | 1.00 | 0.53 | 0.60 | 0.54 |
| Cash ratio | 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 | 1.00 | 0.53 | 0.60 | 0.54 |
Centene Corp.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been relatively stable around 1.1 over the past eight quarters, suggesting that the company generally has $1.10 in current assets for every $1 in current liabilities. This indicates a healthy liquidity position.
The quick ratio, which excludes inventory from current assets, has shown some fluctuations but generally hovers around 0.60. This suggests that Centene Corp. may have some challenges meeting its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure, has shown some variability but has generally remained low, around 0.15. This indicates that Centene Corp. has limited cash on hand to cover its current liabilities, which may suggest a potential liquidity risk.
Overall, Centene Corp. appears to have a reasonable liquidity position based on its current and quick ratios, although the lower cash ratio may warrant further monitoring to ensure the company can effectively meet its short-term obligations.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Centene Corp. has shown fluctuations over the past eight quarters, ranging from a low of 33.51 days in Q4 2022 to a high of 44.31 days in Q1 2022. The company's cash conversion cycle measures the time it takes for Centene to convert its investment in inventory and other resources into cash flows from sales to customers. A shorter cash conversion cycle generally indicates that the company is efficient in managing its working capital and converting its resources into cash quickly.
From the data provided, we can see that Centene's cash conversion cycle has generally remained within a narrow range of 33.51 to 44.31 days, with minor fluctuations quarter to quarter. The lower the number of days in the cycle, the better, as it signifies that Centene is able to efficiently manage its inventory and accounts receivable, and collect cash from customers in a timely manner. Conversely, a longer cash conversion cycle may indicate inefficiencies in Centene's working capital management and collection processes.
Overall, the trend in Centene's cash conversion cycle data suggests that the company has been relatively stable in converting its resources into cash over the past two years, although there may be room for improvement in optimizing working capital efficiency for better cash flow management.