The Ensign Group Inc (ENSG)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.56 | 1.42 | 1.34 | 1.22 | 1.04 |
| Quick ratio | 1.48 | 1.38 | 1.27 | 1.16 | 0.99 |
| Cash ratio | 0.71 | 0.72 | 0.57 | 0.53 | 0.44 |
The Ensign Group Inc's liquidity ratios have shown an overall positive trend over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has steadily increased from 1.04 in 2020 to 1.56 in 2024. This indicates that the company's liquidity position has improved, as it now has more current assets to meet its short-term obligations.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects an upward trend from 0.99 in 2020 to 1.48 in 2024. This suggests that the company has a strong ability to meet its immediate short-term liabilities without relying on selling inventory.
The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, has fluctuated slightly but has generally increased from 0.44 in 2020 to 0.71 in 2024. This shows that the company has enhanced its ability to cover its short-term obligations with its readily available cash resources.
Overall, The Ensign Group Inc's liquidity ratios have been improving, indicating a stronger financial position and better ability to meet its short-term financial commitments over the years.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 38.81 | 37.01 | 38.76 | 35.91 | 37.05 |
The cash conversion cycle of The Ensign Group Inc has shown some fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 37.05 days, which decreased slightly to 35.91 days by December 31, 2021. However, there was an increase to 38.76 days by December 31, 2022, before dropping again to 37.01 days by December 31, 2023. By the end of December 31, 2024, the cash conversion cycle increased once more to 38.81 days.
Overall, the company's cash conversion cycle has shown some variability, indicating changes in the efficiency of its working capital management over the years. It is important for The Ensign Group Inc to continuously monitor and improve its cash conversion cycle to ensure optimal cash flow and liquidity management.