DaVita HealthCare Partners Inc (DVA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.19 | 1.20 | 1.32 | 1.27 |
| Quick ratio | 1.17 | 1.08 | 1.14 | 1.23 | 1.15 |
| Cash ratio | 0.31 | 0.17 | 0.16 | 0.23 | 0.16 |
DaVita HealthCare Partners Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown a fluctuating trend over the years, ranging from 1.19 to 1.32. While the current ratio is above 1, indicating that the company's current assets are sufficient to cover its current liabilities, the decreasing trend from 2021 to 2024 may raise concerns about the company's ability to meet short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a fluctuating trend, ranging from 1.08 to 1.23. This indicates that the company may have some difficulty meeting its obligations if inventory cannot be quickly converted to cash.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, shows an increasing trend from 2020 to 2024, ranging from 0.16 to 0.31. This indicates that DaVita HealthCare Partners Inc has been improving its ability to cover its short-term obligations with cash on hand.
Overall, while the company's liquidity ratios show some strength, the decreasing trend in the current ratio and the fluctuating nature of the quick ratio may warrant further monitoring to ensure DaVita HealthCare Partners Inc's ability to meet its short-term financial commitments.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 6.27 | 12.26 | 15.39 | 18.40 | 14.36 |
The cash conversion cycle for DaVita HealthCare Partners Inc has shown fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 14.36 days, which increased to 18.40 days by December 31, 2021. However, the cycle improved in the following years, with values of 15.39 days, 12.26 days, and 6.27 days recorded for the periods ending December 31, 2022, 2023, and 2024, respectively.
The decreasing trend in the cash conversion cycle indicates that DaVita HealthCare Partners Inc has been able to efficiently manage its cash flows and working capital during these years. A lower cash conversion cycle signifies that the company is collecting receivables, managing inventory, and paying suppliers more effectively, resulting in a shorter time to convert its resources into cash. This improvement may suggest enhanced liquidity and operational efficiency within the organization.