The Ensign Group Inc (ENSG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 464,598 | 509,626 | 316,270 | 262,201 | 236,562 |
| Short-term investments | US$ in thousands | 62,255 | 17,229 | 15,441 | 13,763 | 13,449 |
| Receivables | US$ in thousands | 569,897 | 485,039 | 408,432 | 328,731 | 305,062 |
| Total current liabilities | US$ in thousands | 743,428 | 734,747 | 582,072 | 523,068 | 562,399 |
| Quick ratio | 1.48 | 1.38 | 1.27 | 1.16 | 0.99 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($464,598K
+ $62,255K
+ $569,897K)
÷ $743,428K
= 1.48
The quick ratio of The Ensign Group Inc has displayed a positive trend over the past five years, increasing from 0.99 as of December 31, 2020, to 1.48 as of December 31, 2024. This indicates an improvement in the company's ability to meet its short-term obligations using its most liquid assets.
A quick ratio above 1.0 suggests that the company has an adequate level of liquid assets to cover its current liabilities. The upward trend in the quick ratio reflects a strengthening position in liquidity management, providing assurance to investors and creditors regarding the company's short-term financial health.
The consistent increase in the quick ratio signals that The Ensign Group Inc has been effectively managing its short-term liquidity, potentially through efficient working capital management or prudent financial strategies. This positive performance in liquidity may enhance the company's ability to navigate economic uncertainties or capitalize on growth opportunities in the future.
Peer comparison
Dec 31, 2024