Healthcare Services Group Inc (HCSG)

Quick 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 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
Receivables US$ in thousands 383,509 368,975 380,987 352,532 343,406 352,924 335,309 324,144 302,201 289,725 271,081 252,778 255,474 277,031 295,261 303,804 340,930 349,654 346,765 353,106
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
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

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 been relatively stable over the past eight quarters, ranging from 2.55 to 3.02. This indicates that the company has a strong ability to meet its short-term obligations using its most liquid assets, such as cash and accounts receivable. A quick ratio above 1.0 typically suggests that the company is able to cover its short-term liabilities without relying heavily on inventory. Healthcare Services Group, Inc.'s quick ratio consistently above 2.0 reflects a healthy liquidity position, indicating a solid financial health and a reduced risk of liquidity issues in the near term. It is also notable that the quick ratio has generally been above the industry average, indicating a strong liquidity position relative to its peers.