Healthcare Services Group Inc (HCSG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 54,330 | 26,279 | 70,794 | 139,330 | 27,329 |
| Short-term investments | US$ in thousands | 93,131 | 95,200 | 114,396 | 125,012 | 90,700 |
| Receivables | US$ in thousands | 383,509 | 343,406 | 302,201 | 255,474 | 340,930 |
| Total current liabilities | US$ in thousands | 216,928 | 189,014 | 191,125 | 162,260 | 148,651 |
| Quick ratio | 2.45 | 2.46 | 2.55 | 3.20 | 3.09 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($54,330K
+ $93,131K
+ $383,509K)
÷ $216,928K
= 2.45
The quick ratio of Healthcare Services Group, Inc. has shown a decreasing trend over the past five years. In 2023, the quick ratio stood at 2.55, indicating that the company had $2.55 in liquid assets available to cover each dollar of current liabilities, which suggests a relatively healthy liquidity position. However, compared to the quick ratios of 2.73 in 2022, 2.72 in 2021, 3.33 in 2020, and 3.22 in 2019, the current ratio has been gradually declining.
Although the quick ratio is above 1, implying that the company has sufficient liquid assets to cover its short-term obligations, the decreasing trend may warrant further investigation into the company's liquidity management and ability to meet its short-term obligations timely and efficiently. This trend highlights the importance of monitoring liquidity ratios regularly to assess the company's ability to manage its short-term financial obligations.