Concentra Group Holdings Parent, Inc. (CON)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Current ratio | 1.42 | 1.07 | 1.02 | — |
| Quick ratio | 1.31 | 0.11 | 0.13 | — |
| Cash ratio | 0.60 | 0.11 | 0.13 | — |
Concentra Group Holdings Parent, Inc.'s liquidity ratios indicate the firm's ability to meet its short-term obligations. The current ratio has shown an improving trend over the years, from 1.02 in 2022 to 1.42 in 2024. This suggests that the company's current assets are increasing relative to its current liabilities, providing a comfortable cushion for meeting short-term obligations.
In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, was relatively low in 2022 and 2023 at 0.13 and 0.11, respectively. However, there was a significant improvement in 2024, with the quick ratio increasing to 1.31. This indicates a stronger ability to meet short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents, remained relatively stable over the years. It was 0.13 in 2022, slightly dropping to 0.11 in 2023, and then improving to 0.60 in 2024. This suggests that the company has a moderate level of cash on hand relative to its short-term liabilities.
Overall, Concentra Group Holdings Parent, Inc. has shown an improvement in its liquidity position over the years, with increasing current and quick ratios indicating a stronger ability to meet short-term obligations. Additionally, the stable cash ratio provides a moderate level of liquidity cushion.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Cash conversion cycle | days | 37.30 | 0.00 | 0.00 | 0.00 |
Concentra Group Holdings Parent, Inc.'s cash conversion cycle has remained steady at 0.00 days from 2021 to 2023, indicating that the company is efficiently managing its cash flow, inventory, and receivables. However, there was a noticeable increase to 37.30 days as of December 31, 2024. This change suggests a potential delay in converting sales into cash, which could be due to changes in the company's operating cycle or payment terms with customers. It would be advisable for Concentra Group Holdings Parent, Inc. to investigate the reasons behind this increase and explore strategies to optimize its cash conversion cycle moving forward.