Elevance Health Inc (ELV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 26,195,000 | 26,297,000 | 24,080,000 | 21,515,000 | 18,811,000 |
| Quick ratio | 1.28 | 1.37 | 1.38 | 1.45 | 1.55 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,288,000K
+ $25,201,000K
+ $—K)
÷ $26,195,000K
= 1.28
Based on the provided data, Elevance Health Inc's quick ratio has shown a gradual decline over the five-year period from December 31, 2020, to December 31, 2024. The quick ratio decreased from 1.55 in 2020 to 1.28 in 2024.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities. Elevance Health Inc's quick ratio remained above 1 throughout the period, signaling that the company has a comfortable margin in meeting its short-term obligations.
However, the declining trend in the quick ratio may raise some concerns about the company's liquidity position over time. It is important for investors and stakeholders to monitor this ratio closely to ensure that Elevance Health Inc can continue to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024