The Ensign Group Inc (ENSG)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.56 | 1.56 | 1.53 | 1.53 | 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 |
| Quick ratio | 1.48 | 1.46 | 1.43 | 1.47 | 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 |
| Cash ratio | 0.71 | 0.74 | 0.69 | 0.74 | 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 |
The Ensign Group Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has shown a generally increasing trend over the years, starting at 1.31 in March 2020, reaching a peak of 1.56 in December 2024. This suggests an improving ability to cover current liabilities with current assets.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows an upward trend from 1.24 in March 2020 to 1.48 in December 2024. This indicates a strengthening ability to cover short-term liabilities without relying on the sale of inventory.
The cash ratio, which is the most stringent liquidity measure, reflects a fluctuating pattern but overall improvement from 0.24 in March 2020 to 0.71 in June 2024. This demonstrates the company's increasing capacity to cover its current liabilities with cash and cash equivalents.
Overall, The Ensign Group Inc's liquidity ratios suggest a positive liquidity position and improving ability to meet short-term obligations, which enhances its financial stability and operational flexibility.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 38.83 | 42.64 | 40.94 | 40.15 | 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 |
The cash conversion cycle of The Ensign Group Inc shows a generally decreasing trend over the period analyzed. The company's ability to convert its investments in inventory and accounts payable into cash has improved gradually. This trend indicates that the company is efficiently managing its working capital and generating cash flow from its operations at a faster pace.
From March 31, 2020, to December 31, 2024, the cash conversion cycle decreased from 49.44 days to 38.83 days, representing a notable improvement. The company reduced the time it takes to sell its inventory, collect accounts receivable, and pay off its accounts payable during this period.
However, the cash conversion cycle experienced some fluctuations during the analyzed period, reaching a peak of 42.64 days on September 30, 2024. This temporary increase may have been influenced by various factors like changes in sales patterns, payment terms with suppliers, or seasonal variations.
Overall, the downward trend in the cash conversion cycle is a positive sign for The Ensign Group Inc as it reflects the company's ability to efficiently manage its working capital and convert its resources into cash, which can enhance its liquidity and financial stability.