Encompass Health Corp (EHC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 85,400 | 69,100 | 21,800 | 54,800 | 224,000 |
| Short-term investments | US$ in thousands | — | 37,600 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 841,000 | 656,400 | 575,900 | 748,800 | 717,300 |
| Quick ratio | 0.10 | 0.16 | 0.04 | 0.07 | 0.31 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($85,400K
+ $—K
+ $—K)
÷ $841,000K
= 0.10
The quick ratio of Encompass Health Corp has shown a declining trend over the past five years. As of December 31, 2020, the quick ratio stood at 0.31, indicating that the company had $0.31 in liquid assets available to cover each $1 of current liabilities. However, by December 31, 2021, the quick ratio had decreased to 0.07, suggesting a significant deterioration in the company's ability to meet its short-term obligations using its most liquid assets.
The trend continued in the following years, with the quick ratio dropping to 0.04 by December 31, 2022, and then recovering slightly to 0.16 by December 31, 2023. Despite this slight improvement, the quick ratio remains relatively low compared to historical levels. By December 31, 2024, the quick ratio further decreased to 0.10, indicating that the company's liquidity position had weakened again.
Overall, Encompass Health Corp's quick ratio has exhibited volatility and significant fluctuations over the past five years, signaling potential challenges in managing short-term liquidity and meeting immediate financial obligations. Further analysis of the company's liquidity management strategies and financial health may be warranted to assess the implications of the quick ratio trend on its overall financial performance and stability.
Peer comparison
Dec 31, 2024