Hims Hers Health Inc (HIMS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 220,584 | 96,663 | 46,772 | 71,784 | 27,344 |
| Short-term investments | US$ in thousands | 79,667 | 124,318 | 132,900 | 175,500 | 72,864 |
| Total current liabilities | US$ in thousands | 221,367 | 88,468 | 47,941 | 79,221 | 15,228 |
| Cash ratio | 1.36 | 2.50 | 3.75 | 3.12 | 6.58 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($220,584K
+ $79,667K)
÷ $221,367K
= 1.36
The cash ratio of Hims Hers Health Inc has shown a declining trend over the years from 6.58 in December 31, 2020, to 1.36 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has decreased over time. While a higher cash ratio is generally considered more favorable as it signifies greater liquidity and financial strength, Hims Hers Health Inc may need to carefully manage its cash reserves to ensure it can meet its obligations as they come due. It is important for the company to monitor and possibly bolster its cash position to improve its liquidity position and financial stability in the future.
Peer comparison
Dec 31, 2024