Centene Corp (CNC)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands — — — — —
Total current liabilities US$ in thousands 34,261,000 36,716,000 28,464,000 25,765,000 21,585,000
Quick ratio 0.49 0.54 0.51 0.57 0.57

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,063,000K + $2,622,000K + $—K) ÷ $34,261,000K
= 0.49

The quick ratio of Centene Corp has shown some fluctuations over the past five years, ranging from 0.49 to 0.57. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its liquid assets alone.

In particular, the ratio decreased from 0.57 in December 2021 to 0.51 in December 2022, signaling a potential strain on the company's ability to cover its current liabilities with its most liquid assets. However, it improved slightly to 0.54 in December 2023 before declining again to 0.49 by December 2024.

Overall, the trend in the quick ratio suggests that Centene Corp may need to carefully manage its liquidity position in the coming periods to ensure it can meet its short-term financial obligations effectively.