Hims Hers Health Inc (HIMS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 96,663 | 46,772 | 71,784 | 27,344 | 1,510 |
| Short-term investments | US$ in thousands | 124,318 | 132,900 | 175,500 | 72,864 | 37,721 |
| Total current liabilities | US$ in thousands | 88,468 | 47,941 | 79,221 | 15,228 | 979 |
| Cash ratio | 2.50 | 3.75 | 3.12 | 6.58 | 40.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($96,663K
+ $124,318K)
÷ $88,468K
= 2.50
The cash ratio of Hims Hers Health Inc has fluctuated over the past five years. The ratio was at its highest in 2019 at 40.07, indicating that the company had $40.07 in cash and cash equivalents for every dollar of current liabilities. However, the ratio experienced a significant decline in subsequent years, dropping to 6.58 in 2020, 3.12 in 2021, and 3.75 in 2022. The latest available data for 2023 shows a cash ratio of 2.50.
Overall, the decreasing trend in the cash ratio from 2019 to 2023 suggests that the company may be holding less cash relative to its current liabilities in recent years. While a higher cash ratio implies better liquidity and ability to cover short-term obligations, the downward trend may indicate a need for closer monitoring of the company's cash management and liquidity position.