Encompass Health Corp (EHC)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
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 some fluctuation over the analyzed period, ranging from a low of 0.04 to a high of 0.66. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
From March 31, 2020, to March 31, 2021, the quick ratio was relatively low, indicating potential liquidity concerns as the company may have had difficulty meeting its short-term obligations without relying on inventory. However, from June 2021 to September 2023, there was a slight improvement in the quick ratio, suggesting a better ability to cover immediate liabilities with liquid assets.
The quick ratio further improved significantly from March 31, 2024, reaching its highest level of 0.43 by June 30, 2024, indicating a more favorable liquidity position. However, by December 31, 2024, the quick ratio had decreased to 0.10, possibly indicating a temporary decline in liquid assets or an increase in short-term liabilities.
Overall, it is essential for Encompass Health Corp to carefully manage its liquidity position to ensure it can comfortably meet its short-term obligations without relying too heavily on inventory or facing liquidity challenges. A consistent and healthy quick ratio is crucial for financial stability and operational resilience.
Peer comparison
Dec 31, 2024