Concentra Group Holdings Parent, Inc. (CON)

Concentra Group Holdings Parent, Inc.'s liquidity ratios show a mixed performance over the year 2024.

The current ratio increased from 1.19 in March to 1.52 in September, indicating an improvement in the company's ability to cover its short-term liabilities with its current assets. However, it slightly dropped to 1.42 by the end of December, implying a slight decline in liquidity compared to the previous quarter.

The quick ratio displays significant fluctuations throughout the year, starting at a low of 0.18 in March and then increasing to 1.37 by September. This suggests that the company may have had difficulty meeting its short-term obligations with its most liquid assets initially, but the situation improved significantly by the end of the year when it reached 1.31.

The cash ratio also shows fluctuations, although to a lesser extent. The ratio moved from 0.18 in March to 0.60 in December, indicating that the company's ability to cover its current liabilities with its cash and cash equivalents improved over the year.

Overall, while the company's liquidity ratios display volatility over the course of 2024, the general trend suggests an improvement in liquidity position as seen in the current and quick ratios. However, it is important to monitor these ratios closely to ensure the company maintains a healthy liquidity position in the future.

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Additional liquidity measure

The cash conversion cycle for Concentra Group Holdings Parent, Inc. has shown variations over the four quarters of 2024. In March 2024, the company had a cash conversion cycle of 0.00 days, indicating a situation where it was able to convert its investments in inventory and receivables back into cash rapidly. However, in the following quarters, the cycle lengthened to 45.09 days in June, 45.18 days in September, and then improved slightly to 37.20 days by December 2024.

The increase in the cash conversion cycle over the year suggests potential challenges in efficiently managing the company's cash flow. A longer cash conversion cycle may imply inefficiencies in collecting receivables, managing inventory, or delaying payments. Although there was a slight improvement by the end of the year, it is essential for Concentra Group Holdings Parent, Inc. to focus on optimizing its working capital management to shorten the cash conversion cycle and enhance its liquidity position in the future.