Encompass Health Corp (EHC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 85,400 | 69,100 | 21,800 | 54,800 | 224,000 |
| Short-term investments | US$ in thousands | — | 37,600 | — | — | — |
| Total current liabilities | US$ in thousands | 841,000 | 656,400 | 575,900 | 748,800 | 717,300 |
| Cash ratio | 0.10 | 0.16 | 0.04 | 0.07 | 0.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($85,400K
+ $—K)
÷ $841,000K
= 0.10
The cash ratio of Encompass Health Corp has shown some fluctuations over the past five years. The ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, was at 0.31 as of December 31, 2020. However, it decreased to 0.07 by December 31, 2021, suggesting a significant reduction in the company's liquidity position.
Subsequently, the cash ratio continued to decline, reaching 0.04 by December 31, 2022, indicating a continued challenge in maintaining adequate cash reserves relative to its short-term obligations. However, there was a slight improvement in the cash ratio to 0.16 by December 31, 2023, indicating a partial recovery in the company's liquidity position.
By the end of December 31, 2024, the cash ratio stood at 0.10, showing a modest decrease compared to the previous year. Overall, the trend in Encompass Health Corp's cash ratio over the five-year period reflects some volatility in its ability to meet short-term financial obligations with its available cash resources.
Peer comparison
Dec 31, 2024