Healthcare Services Group Inc (HCSG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 192,547 | 216,928 | 178,619 | 191,125 | 162,260 |
| Quick ratio | 0.56 | 0.68 | 0.68 | 0.97 | 1.63 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($56,776K
+ $50,535K
+ $—K)
÷ $192,547K
= 0.56
The quick ratio of Healthcare Services Group Inc has shown a declining trend over the past five years. Starting at a robust level of 1.63 on December 31, 2020, it decreased to 0.97 by December 31, 2021, signaling a potential deterioration in the company's short-term liquidity position. This downward trend continued as the ratio dropped further to 0.68 on both December 31, 2022, and December 31, 2023, indicating that the company may be facing challenges in meeting its short-term obligations with its most liquid assets. By December 31, 2024, the quick ratio fell to 0.56, raising concerns about Healthcare Services Group Inc's ability to cover its current liabilities with its quick assets. The declining quick ratio suggests a potential liquidity risk that warrants further investigation into the company's financial health and management of working capital.