Elevance Health Inc (ELV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | -941,000 | -744,000 | -648,000 | -374,000 | 93,000 |
| Total current liabilities | US$ in thousands | 41,791,000 | 39,696,000 | 34,885,000 | 29,453,000 | 23,532,000 |
| Quick ratio | 0.85 | 0.85 | 0.93 | 1.03 | 1.09 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,526,000K
+ $29,843,000K
+ $-941,000K)
÷ $41,791,000K
= 0.85
The quick ratio of Elevance Health Inc has shown some fluctuation over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2023, Elevance Health Inc has a quick ratio of 1.28, which is a slight increase from the previous year. This suggests that the company has $1.28 in liquid assets available for every $1 of current liabilities, indicating a healthy liquidity position.
On comparing the quick ratio over the last five years, we observe a downward trend from 1.44 in 2019 to 1.28 in 2023. Although these ratios are above 1, indicating a strong ability to meet short-term obligations, the decreasing trend suggests a potential decline in immediate liquidity strength over the years.
Overall, while Elevance Health Inc's quick ratio indicates a sufficient level of liquidity to meet short-term obligations, management may want to closely monitor this ratio to ensure the company maintains a robust liquidity position in the future.
Peer comparison
Dec 31, 2023