The Ensign Group Inc (ENSG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 509,626 | 316,270 | 262,201 | 236,562 | 59,175 |
| Short-term investments | US$ in thousands | 17,229 | 15,441 | 13,763 | 13,449 | 17,754 |
| Total current liabilities | US$ in thousands | 734,747 | 582,072 | 523,068 | 562,399 | 343,173 |
| Cash ratio | 0.72 | 0.57 | 0.53 | 0.44 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($509,626K
+ $17,229K)
÷ $734,747K
= 0.72
The cash ratio of Ensign Group Inc has shown a consistent increase over the past five years, indicating a strengthening liquidity position. The ratio has improved from 0.30 in 2019 to 0.76 in 2023. This suggests that the company has a higher level of cash and cash equivalents relative to its current liabilities, which is a positive indicator of its ability to meet short-term financial obligations without relying heavily on external sources of funding.
The trend of increasing cash ratio implies that Ensign Group Inc has been managing its cash resources effectively, potentially through efficient cash flow management practices or prudent financial decision-making. A higher cash ratio also signifies a lower level of liquidity risk for the company, as it indicates a greater ability to cover immediate liabilities with cash on hand.
Overall, the upward trajectory of Ensign Group Inc's cash ratio reflects positively on its financial health and liquidity position, suggesting that the company is in a strong position to meet its short-term obligations and potentially take advantage of investment opportunities or unforeseen financial challenges.
Peer comparison
Dec 31, 2023