Elevance Health Inc (ELV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,526,000 | 7,387,000 | 4,880,000 | 5,741,000 | 4,937,000 |
| Short-term investments | US$ in thousands | 29,843,000 | 26,905,000 | 28,148,000 | 24,992,000 | 20,698,000 |
| Total current liabilities | US$ in thousands | 41,791,000 | 39,696,000 | 34,885,000 | 29,453,000 | 23,532,000 |
| Cash ratio | 0.87 | 0.86 | 0.95 | 1.04 | 1.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,526,000K
+ $29,843,000K)
÷ $41,791,000K
= 0.87
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on external financing.
Elevance Health Inc's cash ratio has shown a slight decrease from 1.00 in 2019 to 0.85 in 2023. This downward trend suggests a potential reduction in the company's immediate liquidity position over the years. However, it is important to note that Elevance Health Inc still maintains a relatively healthy cash ratio above 0.8, indicating that it possesses a sufficient level of liquid assets to cover its short-term obligations.
The decreasing cash ratio may raise some concerns about the company's ability to quickly meet its financial obligations if necessary. Further analysis of Elevance Health Inc's cash flow management and liquidity position would be beneficial to fully understand the factors driving this trend and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023