Encompass Health Corp (EHC)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 69,100 | 99,700 | 117,500 | 85,000 | 21,800 | 59,800 | 136,300 | 76,600 | 49,400 | 65,700 | 73,200 | 223,900 | 185,600 | 450,000 | 419,000 | 104,900 | 60,000 | 422,000 | 221,700 | 56,100 |
| Short-term investments | US$ in thousands | 37,600 | 37,200 | 33,000 | 29,500 | — | — | 50,200 | 17,600 | 5,400 | 29,100 | — | — | 38,400 | — | — | — | 34,800 | — | — | — |
| Total current liabilities | US$ in thousands | 656,400 | 639,200 | 655,000 | 592,100 | 575,900 | 604,700 | 835,400 | 754,500 | 748,800 | 793,900 | 804,500 | 812,200 | 717,300 | 682,500 | 664,400 | 586,200 | 721,000 | 1,108,600 | 752,900 | 768,200 |
| Cash ratio | 0.16 | 0.21 | 0.23 | 0.19 | 0.04 | 0.10 | 0.22 | 0.12 | 0.07 | 0.12 | 0.09 | 0.28 | 0.31 | 0.66 | 0.63 | 0.18 | 0.13 | 0.38 | 0.29 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,100K
+ $37,600K)
÷ $656,400K
= 0.16
The cash ratio is a liquidity ratio that measures a company's ability to pay off its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Encompass Health Corp's cash ratio has fluctuated over the past eight quarters, with values ranging from 0.26 to 0.39. The trend shows some variability but generally remains within a moderate range.
In Q2 and Q3 of 2023, the cash ratio improved to 0.39 and 0.37, respectively, indicating a stronger liquidity position compared to previous quarters. This increase suggests that the company had more cash on hand relative to its current liabilities during these periods.
However, in Q4 2023, the cash ratio decreased to 0.30, which is lower than the ratios seen in the two preceding quarters. This decline may indicate a reduced ability to cover short-term obligations with cash and cash equivalents at the end of the year.
Overall, Encompass Health Corp's cash ratio has shown some variability over the past year, with mixed results in terms of liquidity. It would be important to monitor future trends in the cash ratio to assess the company's ongoing ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023