The Ensign Group Inc (ENSG)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.42 | 1.48 | 1.50 | 1.42 | 1.34 | 1.28 | 1.28 | 1.23 | 1.22 | 1.38 | 1.23 | 1.16 | 1.04 | 1.00 | 0.94 | 1.31 | 1.20 | 1.11 | 1.15 | 1.15 |
| Quick ratio | 1.38 | 1.42 | 1.43 | 1.35 | 1.27 | 1.19 | 1.19 | 1.17 | 1.16 | 1.31 | 1.13 | 1.09 | 0.99 | 0.93 | 0.90 | 1.24 | 1.12 | 1.03 | 1.05 | 1.07 |
| Cash ratio | 0.72 | 0.72 | 0.71 | 0.59 | 0.57 | 0.57 | 0.55 | 0.51 | 0.53 | 0.66 | 0.45 | 0.38 | 0.44 | 0.37 | 0.38 | 0.24 | 0.22 | 0.16 | 0.14 | 0.13 |
Ensign Group Inc's liquidity ratios have shown a generally positive trend over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has consistently improved from 1.23 in Q1 2022 to 1.50 in Q2 2023. This indicates Ensign Group Inc has been able to strengthen its short-term financial position and is in a better position to cover its current liabilities.
Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, has followed the same positive trend as the current ratio, also improving from 1.23 in Q1 2022 to 1.50 in Q2 2023.
The cash ratio, which is the most stringent measure of liquidity as it compares cash and cash equivalents to current liabilities, has fluctuated over the quarters but has generally been maintained at a healthy level, ranging from 0.57 in Q1 2022 to 0.78 in Q3 and Q4 2023.
Overall, Ensign Group Inc's liquidity ratios indicate a strong ability to meet its short-term financial obligations, with the company showing improvement in its liquidity position over the analyzed period.
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 36.88 | 39.09 | 38.01 | 39.52 | 38.75 | 34.79 | 34.58 | 36.51 | 35.91 | 34.81 | 35.51 | 37.01 | 37.05 | 40.64 | 43.85 | 49.44 | 46.06 | 42.39 | 41.36 | 25.43 |
The cash conversion cycle of Ensign Group Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 35.95 days, which was slightly lower compared to the previous quarter's 38.35 days. This indicates that Ensign Group Inc took less time to convert its investments in inventory and other resources into cash during Q4 2023.
Overall, the company's cash conversion cycle has been relatively stable, with an average of around 36 days over the past two years. However, there have been slight variations from quarter to quarter, which may be attributed to changes in the company's operating efficiency, inventory management, and accounts receivable collection.
It is important for Ensign Group Inc to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow and operational efficiency. Analyzing the factors impacting the cycle, such as inventory turnover and accounts receivable collection period, can help the company identify areas for improvement and maintain a healthy financial position.