Encompass Health Corp (EHC)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 85,400 | 147,800 | 182,100 | 172,700 | 104,200 | 99,700 | 117,500 | 85,000 | 21,800 | 59,800 | 186,500 | 94,200 | 54,800 | 94,800 | 73,200 | 223,900 | 224,000 | 450,000 | 419,000 | 104,900 |
| Short-term investments | US$ in thousands | — | 40,600 | 117,300 | 113,000 | 37,600 | 37,200 | 33,000 | 29,500 | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 841,000 | 897,400 | 694,500 | 680,300 | 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 |
| Cash ratio | 0.10 | 0.21 | 0.43 | 0.42 | 0.22 | 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 |
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 fluctuations over the past few years, ranging from a low of 0.04 to a high of 0.66. The cash ratio indicates the company's ability to cover its short-term obligations with its available cash and equivalents.
In analyzing the trend of the cash ratio, we observe a general increase from March 31, 2020, to September 30, 2020, which peaked at 0.66. This indicates a strengthening liquidity position during that period. However, there was a significant decline in the cash ratio in the following quarters, reaching a low of 0.07 by December 31, 2021. This decrease might suggest that Encompass Health Corp had fewer liquid assets relative to its current liabilities during that time frame.
Subsequently, there were fluctuations in the cash ratio between March 31, 2022, and September 30, 2024, with levels ranging between 0.04 and 0.43. These fluctuations indicate varying levels of liquidity and the company's ability to meet short-term obligations with cash on hand.
Overall, while the cash ratio experienced fluctuations, it is essential for Encompass Health Corp to maintain a sufficient level of liquidity to meet its short-term financial obligations and to sustain its operations effectively. Management should continue to monitor and manage the company's cash position to ensure financial stability and flexibility.
Peer comparison
Dec 31, 2024