DaVita HealthCare Partners Inc (DVA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 380,063 | 244,086 | 461,900 | 324,958 | 1,102,370 |
| Short-term investments | US$ in thousands | 56,111 | 184,708 | 79,135 | 72,395 | 59,663 |
| Total current liabilities | US$ in thousands | 2,642,210 | 2,619,750 | 2,398,530 | 2,476,140 | 2,372,100 |
| Cash ratio | 0.17 | 0.16 | 0.23 | 0.16 | 0.49 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($380,063K
+ $56,111K)
÷ $2,642,210K
= 0.17
The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has varied for DaVita Inc over the past five years.
In 2019, the cash ratio was high at 0.50, indicating that DaVita had a substantial amount of cash on hand relative to its short-term obligations. However, there was a significant drop in the cash ratio in 2020 to 0.17, suggesting a decline in DaVita's ability to cover its short-term liabilities solely with cash.
The cash ratio improved in 2021 to 0.23, indicating a better position compared to the previous year. This improvement was followed by a slight decrease in 2022 to 0.15, raising concerns about DaVita's liquidity position.
The most recent data from 2023 shows a cash ratio of 0.19. This indicates a moderate improvement compared to the previous year but still lower than the levels observed in 2019 and 2021.
Overall, DaVita Inc's cash ratio has shown fluctuations over the years, with the company having varying levels of liquidity relative to its short-term liabilities. Further assessment of DaVita's cash management practices and short-term liquidity position may be warranted to maintain financial stability.
Peer comparison
Dec 31, 2023