DaVita HealthCare Partners Inc (DVA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,415,910 | 2,550,650 | 2,410,510 | 2,438,820 | 2,305,060 |
| Total current liabilities | US$ in thousands | 2,642,210 | 2,619,750 | 2,398,530 | 2,476,140 | 2,372,100 |
| Quick ratio | 1.08 | 1.14 | 1.23 | 1.15 | 1.46 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($380,063K
+ $56,111K
+ $2,415,910K)
÷ $2,642,210K
= 1.08
The quick ratio, also known as the acid-test ratio, measures the ability of DaVita Inc to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
Over the past five years, DaVita Inc's quick ratio has fluctuated, ranging from 1.10 to 1.47. The ratio decreased from 1.47 in 2019 to 1.10 in 2023, which may indicate a potential deterioration in the company's liquidity position. However, it is important to note that a quick ratio of 1.10 still suggests that DaVita Inc has sufficient quick assets to cover its current liabilities.
The downward trend in the quick ratio from 2022 to 2023 may warrant further investigation into the company's liquidity management and its ability to maintain a healthy balance between liquid assets and current liabilities. It is essential for DaVita Inc to monitor its quick ratio closely to ensure it has the necessary resources to meet its short-term obligations in a timely manner.
Peer comparison
Dec 31, 2023