Healthcare Services Group Inc (HCSG)

Liquidity ratios

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
Current ratio 2.64 2.84 2.90 3.15 2.69 2.82 2.84 3.01 2.86 3.68 3.34 3.89 3.53 4.00 3.09 2.79 3.47 3.32 3.36 2.99
Quick ratio 2.45 2.61 2.65 2.87 2.46 2.56 2.53 2.66 2.55 3.22 2.95 3.42 3.20 3.58 2.75 2.46 3.09 2.94 2.92 2.62
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

Healthcare Services Group, Inc.'s liquidity ratios appear to have fluctuated slightly over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown a general trend of staying above 2.5, indicating a healthy level of liquidity. However, there was a decrease in Q4 2023 compared to the previous quarter.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also remained above 2.5 in most quarters, reflecting the company's ability to meet immediate obligations without relying on selling inventory. Similar to the current ratio, there was a decrease in Q4 2023 compared to the previous quarter.

The cash ratio, which focuses solely on the company's ability to cover current liabilities with its cash and cash equivalents, has shown some variability but generally stayed around 0.75 to 1.0. Although it dipped in Q4 2023 compared to the previous quarter, it is important to note that the company has maintained a level of liquidity to cover its short-term obligations primarily using cash.

Overall, Healthcare Services Group, Inc. has demonstrated consistent liquidity throughout the quarters analyzed, as indicated by the current, quick, and cash ratios all being relatively stable and at healthy levels during this period.

Additional liquidity measure

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 conversion cycle days 69.61 69.60 72.99 66.81 63.65 66.39 62.96 62.37 58.38 58.75 53.98 49.45 48.40 52.05 54.25 56.06 63.90 63.37 61.37 61.25

The cash conversion cycle of Healthcare Services Group, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 67.53 days, slightly lower than the previous quarter. This indicates that the company takes approximately 67.53 days to convert its investments in inventory and other resources into cash inflows.

Looking at the trend over the past year, there has been some variability in the cash conversion cycle, with the highest value recorded in Q2 2023 at 71.72 days and the lowest in Q1 2022 at 61.37 days. Overall, the company has maintained its cash conversion cycle within the range of 61.37 to 71.72 days, which suggests efficient management of working capital.

A higher cash conversion cycle may indicate slower collections from customers, longer inventory turnover, or delayed payment to suppliers, which could potentially strain the company's liquidity position. Conversely, a lower cash conversion cycle implies faster cash flow generation, better inventory management, and efficient collection practices.

It is important for Healthcare Services Group, Inc. to monitor and manage its cash conversion cycle effectively to optimize working capital efficiency and maintain healthy liquidity levels for sustained operations and growth.