Enhabit Inc. (EHAB)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Cash	US$ in thousands	27,400	31,600	34,400	37,600	22,900	44,100	50,200
Short-term investments	US$ in thousands	—	—	1,800	600	—	—	—
Receivables	US$ in thousands	167,700	170,500	151,500	160,800	161,000	156,700	154,600
Total current liabilities	US$ in thousands	137,700	143,000	123,500	135,600	132,900	150,300	154,400
Quick ratio		1.42	1.41	1.52	1.47	1.38	1.34	1.33

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($27,400K + $—K + $167,700K) ÷ $137,700K
= 1.42

The quick ratio of Enhabit Inc. has shown a relatively stable trend over the past seven quarters, ranging between 1.33 and 1.52. This indicates that the company has a strong ability to meet its short-term liabilities using its most liquid assets, such as cash, marketable securities, and accounts receivable.

An increasing trend in the quick ratio suggests an improving liquidity position, as seen from the slight uptrend from 1.33 in June 2022 to 1.52 in June 2023. However, the ratio experienced a slight dip in the most recent quarter, dropping to 1.42 as of December 31, 2023.

Overall, Enhabit Inc.'s quick ratio reflects a healthy liquidity position, with the company having a sufficient level of liquid assets to cover its short-term obligations. It is important for the company to continue monitoring this ratio to ensure that it maintains a strong liquidity position going forward.