The Ensign Group Inc (ENSG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 485,039 | 408,432 | 328,731 | 305,062 | 308,985 |
| Total current liabilities | US$ in thousands | 734,747 | 582,072 | 523,068 | 562,399 | 343,173 |
| Quick ratio | 1.38 | 1.27 | 1.16 | 0.99 | 1.12 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($509,626K
+ $17,229K
+ $485,039K)
÷ $734,747K
= 1.38
The quick ratio of Ensign Group Inc has shown a generally positive trend over the past five years, increasing from 1.20 in 2019 to 1.42 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has been improving. A quick ratio above 1.0 suggests that the company has an adequate level of liquid assets to cover its current liabilities, which is a positive sign for creditors and investors.
The consistent improvement in the quick ratio reflects Ensign Group Inc's strong liquidity position and efficient management of its current assets. It indicates that the company has been effectively managing its cash, marketable securities, and accounts receivable to ensure it can meet its short-term financial obligations without relying heavily on inventory or other less liquid assets.
Overall, the increasing trend in the quick ratio for Ensign Group Inc demonstrates a strengthening of its financial position and ability to weather short-term financial challenges. Investors and stakeholders can view this as a positive indicator of the company's liquidity and financial health.
Peer comparison
Dec 31, 2023