CorVel Corp (CRVL)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 105,563 | 71,329 | 97,504 | 139,716 | 83,223 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 184,499 | 167,887 | 171,370 | 162,460 | 133,689 |
| Cash ratio | 0.57 | 0.42 | 0.57 | 0.86 | 0.62 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($105,563K
+ $—K)
÷ $184,499K
= 0.57
The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using liquid assets.
CorVel Corp's cash ratio fluctuated over the past five years, ranging from 0.42 to 0.86. The cash ratio was 0.57 in 2024, which was consistent with the ratio in 2022. This suggests that the company maintained a relatively stable level of cash to cover its short-term liabilities during these years.
In 2023, the cash ratio decreased to 0.42, indicating a lower level of cash available to cover short-term obligations compared to the other years. However, the ratio improved in 2021, reaching 0.86, which was the highest in the period analyzed. This significant increase in the cash ratio in 2021 suggests that CorVel Corp had a stronger liquidity position in that year.
Overall, while the cash ratio varied year over year for CorVel Corp, the company generally maintained a reasonable level of cash relative to its short-term liabilities, with the ratio ranging from 0.42 to 0.86 during the period under review.