Healthcare Services Group Inc (HCSG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 56,776 | 54,330 | 26,279 | 70,794 | 139,330 |
| Short-term investments | US$ in thousands | 50,535 | 93,131 | 95,200 | 114,396 | 125,012 |
| Total current liabilities | US$ in thousands | 192,547 | 216,928 | 178,619 | 191,125 | 162,260 |
| Cash ratio | 0.56 | 0.68 | 0.68 | 0.97 | 1.63 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($56,776K
+ $50,535K)
÷ $192,547K
= 0.56
The cash ratio of Healthcare Services Group Inc has shown a declining trend over the years, decreasing from 1.63 in December 2020 to 0.56 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened progressively. A cash ratio of less than 1 suggests that the company may have difficulties meeting its short-term obligations solely through its cash resources. It is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations in a timely manner.