Healthcare Services Group Inc (HCSG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 54,330 | 26,279 | 70,794 | 139,330 | 27,329 |
| Short-term investments | US$ in thousands | 93,131 | 95,200 | 114,396 | 125,012 | 90,700 |
| Total current liabilities | US$ in thousands | 216,928 | 189,014 | 191,125 | 162,260 | 148,651 |
| Cash ratio | 0.68 | 0.64 | 0.97 | 1.63 | 0.79 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($54,330K
+ $93,131K)
÷ $216,928K
= 0.68
The cash ratio of Healthcare Services Group, Inc. has shown some fluctuations over the past five years. The ratio was at its lowest point in 2023 at 0.78, indicating that the company had $0.78 of cash and cash equivalents for every $1 of current liabilities. This may suggest a tighter liquidity position compared to previous years.
In 2022 and 2021, the cash ratio was 0.81 and 1.14, respectively. This indicates that the company had slightly improved its ability to cover its short-term liabilities with cash on hand. However, the ratio dropped significantly in 2020 to 1.76, signaling a strong improvement in liquidity compared to the previous years.
In 2019, the cash ratio was 0.93, showing a lower level of liquidity compared to 2020 but higher than the most recent years. Overall, the trend in the cash ratio suggests some variability in Healthcare Services Group, Inc.'s ability to meet its short-term obligations with its available cash reserves and cash equivalents.