The Ensign Group Inc (ENSG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,046,930 | 781,125 | 639,709 | 582,956 | 411,081 |
| Total current liabilities | US$ in thousands | 734,747 | 582,072 | 523,068 | 562,399 | 343,173 |
| Current ratio | 1.42 | 1.34 | 1.22 | 1.04 | 1.20 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,046,930K ÷ $734,747K
= 1.42
Ensign Group Inc's current ratio has shown fluctuations over the past five years. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets.
In 2023, the current ratio improved to 1.42 from 1.34 in 2022, suggesting that the company was better positioned to meet its short-term obligations. This increase may indicate improved liquidity and operational efficiency.
Comparing this to 2021 and 2020, where the current ratios were 1.22 and 1.04 respectively, it shows a positive trend in the company’s liquidity management. The decrease in the current ratio in 2020 could have signaled potential liquidity challenges, but the subsequent improvements indicate management's efforts to address this.
The current ratio in 2019 was 1.20, relatively close to the current ratio in 2023. This suggests that Ensign Group Inc has maintained its liquidity position over the years.
Overall, the trend in Ensign Group Inc's current ratio indicates an improvement in liquidity and the company's ability to meet its short-term obligations efficiently. It is essential for stakeholders to monitor these ratios to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023