Enhabit Inc. (EHAB)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Total current assets	US$ in thousands	210,100	217,800	199,600	212,600	211,800	225,700	217,500
Total current liabilities	US$ in thousands	137,700	143,000	123,500	135,600	132,900	150,300	154,400
Current ratio		1.53	1.52	1.62	1.57	1.59	1.50	1.41

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $210,100K ÷ $137,700K
= 1.53

The current ratio of Enhabit Inc. has been fluctuating over the past few quarters, ranging from a low of 1.41 in June 2022 to a high of 1.62 in June 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity.

Enhabit Inc.'s current ratio has generally been above 1.5, indicating a healthy liquidity position overall. However, the fluctuations in the ratio suggest some variability in the company's short-term liquidity management. It will be important for Enhabit Inc. to closely monitor and manage its current assets and liabilities to ensure continued stability and ability to meet its short-term obligations. Overall, the current ratio analysis suggests that Enhabit Inc. has maintained a relatively strong liquidity position, but ongoing attention to liquidity management will be key to sustaining this position.