Healthcare Services Group Inc (HCSG)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	54,330	31,313	28,662	16,153	26,279	19,633	31,681	32,899	70,794	79,582	124,587	123,654	139,330	109,920	78,109	64,498	27,329	40,572	16,156	28,362
Short-term investments	US$ in thousands	93,131	90,004	93,185	95,985	95,200	93,748	97,488	107,171	114,396	125,583	125,843	125,773	125,012	94,042	92,318	90,497	90,700	79,714	79,533	78,508
Total current liabilities	US$ in thousands	216,928	187,774	189,664	162,164	189,014	181,822	183,929	174,304	191,125	153,854	176,623	146,907	162,260	134,296	169,495	186,284	148,651	160,009	151,391	175,482
Cash ratio		0.68	0.65	0.64	0.69	0.64	0.62	0.70	0.80	0.97	1.33	1.42	1.70	1.63	1.52	1.01	0.83	0.79	0.75	0.63	0.61

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 eight quarters. The ratio has ranged from a low of 0.75 in Q3 2022 to a high of 1.01 in Q1 2022. The ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.

A cash ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations solely with its cash reserves. In this case, Healthcare Services Group, Inc. has generally maintained a cash ratio below 1 over the periods analyzed, suggesting that it may need to rely on other sources of liquidity to meet its current obligations.

The recent trend shows some improvement, with the cash ratio increasing from 0.77 in Q3 2023 to 0.78 in Q4 2023. This suggests that the company's liquidity position has slightly strengthened in the most recent quarter. However, it is important to monitor this ratio over time to ensure the company can effectively manage its short-term financial obligations.