Healthcare Services Group Inc (HCSG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 571,696 | 508,632 | 546,382 | 572,403 | 515,732 |
| Total current liabilities | US$ in thousands | 216,928 | 189,014 | 191,125 | 162,260 | 148,651 |
| Current ratio | 2.64 | 2.69 | 2.86 | 3.53 | 3.47 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $571,696K ÷ $216,928K
= 2.64
The current ratio of Healthcare Services Group, Inc. has exhibited a declining trend over the past five years, from 3.47 in 2019 to 2.64 in 2023. This indicates that the company's liquidity position, as measured by its ability to meet short-term obligations with current assets, has weakened over this period. Although the current ratio remains above 1, suggesting that the company's current assets are still sufficient to cover its current liabilities, the decreasing trend warrants careful monitoring. A current ratio of 2.64 in 2023 means that for every dollar of current liabilities, the company has $2.64 in current assets available, which indicates a relatively healthy liquidity position despite the decline. It would be important for Healthcare Services Group, Inc. to closely assess its working capital management and potentially implement strategies to improve its liquidity position moving forward.