Elevance Health Inc (ELV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,288,000 | 6,526,000 | 7,387,000 | 4,880,000 | 5,741,000 |
| Short-term investments | US$ in thousands | 25,201,000 | 29,614,000 | 25,952,000 | 26,267,000 | 23,433,000 |
| Total current liabilities | US$ in thousands | 26,195,000 | 26,297,000 | 24,080,000 | 21,515,000 | 18,811,000 |
| Cash ratio | 1.28 | 1.37 | 1.38 | 1.45 | 1.55 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,288,000K
+ $25,201,000K)
÷ $26,195,000K
= 1.28
The cash ratio of Elevance Health Inc has shown a decreasing trend over the past five years, declining from 1.55 in December 2020 to 1.28 in December 2024. This ratio indicates the company's ability to cover its short-term liabilities using its cash and cash equivalents.
A cash ratio above 1 suggests that the company has sufficient liquid assets to cover its current obligations. Elevance Health Inc has consistently maintained a cash ratio above 1 during the period under review, indicating a healthy liquidity position. However, the decreasing trend in the cash ratio may raise concerns about the company's ability to meet its short-term obligations solely from its cash reserves.
It is important to monitor this ratio closely in the future to ensure that the company maintains adequate liquidity levels to support its operations and financial health.
Peer comparison
Dec 31, 2024