Healthcare Services Group Inc (HCSG)
Liquidity ratios
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
---|---|---|---|---|---|
Current ratio | 2.89 | 2.64 | 2.85 | 2.86 | 3.53 |
Quick ratio | 0.56 | 0.68 | 0.68 | 0.97 | 1.63 |
Cash ratio | 0.56 | 0.68 | 0.68 | 0.97 | 1.63 |
The current ratio of Healthcare Services Group Inc has shown a declining trend over the years, decreasing from 3.53 in 2020 to 2.89 in 2024. This indicates that the company may have slightly less liquidity to cover its short-term obligations.
Similarly, the quick ratio has also decreased steadily from 1.63 in 2020 to 0.56 in 2024, suggesting a diminishing ability to meet current liabilities with its most liquid assets.
Furthermore, the cash ratio has followed a similar pattern, dropping from 1.63 in 2020 to 0.56 in 2024. This implies that the company's cash and cash equivalents may be becoming relatively less sufficient to cover immediate obligations.
Overall, the liquidity ratios of Healthcare Services Group Inc indicate a decreasing trend in liquidity over the years, which could potentially pose challenges in meeting short-term financial obligations.
Additional liquidity measure
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
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Cash conversion cycle | days | 4.11 | 4.63 | 5.16 | 6.71 | 7.73 |
The cash conversion cycle of Healthcare Services Group Inc has shown a consistent improvement over the years, decreasing from 7.73 days as of December 31, 2020, to 4.11 days as of December 31, 2024. This trend indicates that the company has been more efficient in managing its cash flow and working capital during this period. A lower cash conversion cycle suggests that the company is able to collect cash from its sales more quickly, convert inventory into sales faster, and pay its suppliers at a slower pace, which can improve liquidity and overall financial performance. Healthcare Services Group Inc's decreasing cash conversion cycle reflects effective working capital management and could potentially lead to better financial health in the future.