Hims Hers Health Inc (HIMS)
Cash ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 165,518 | 129,295 | 105,237 | 96,663 | 57,996 | 65,417 | 48,745 | 46,772 | 57,964 | 55,033 | 48,284 | 71,784 | 64,772 | 107,145 | 88,169 | 27,344 | 1,258 | 1,386 | 1,482 |
| Short-term investments | US$ in thousands | 88,553 | 97,997 | 98,355 | 124,318 | 154,501 | 127,725 | 135,648 | 132,900 | 140,427 | 139,944 | 154,769 | 175,500 | 187,653 | 210,178 | 235,097 | 72,864 | 59,146 | — | — |
| Total current liabilities | US$ in thousands | 152,645 | 108,671 | 93,324 | 88,468 | 82,545 | 66,547 | 56,283 | 47,941 | 66,818 | 55,623 | 48,500 | 79,221 | 52,498 | 27,344 | 19,680 | 15,228 | 3,038 | 1,168 | 1,167 |
| Cash ratio | 1.66 | 2.09 | 2.18 | 2.50 | 2.57 | 2.90 | 3.28 | 3.75 | 2.97 | 3.51 | 4.19 | 3.12 | 4.81 | 11.60 | 16.43 | 6.58 | 19.88 | 1.19 | 1.27 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($165,518K
+ $88,553K)
÷ $152,645K
= 1.66
The cash ratio for Hims Hers Health Inc has shown fluctuations over the periods analyzed. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In the most recent period, as of September 30, 2024, the cash ratio was 1.66, indicating that the company had sufficient cash to cover 1.66 times of its current liabilities with cash and cash equivalents.
Looking at the trend, the cash ratio has generally been on a decreasing trend in recent periods, indicating a potential decrease in the company's liquidity position. This could be a cause for concern as a decreasing cash ratio may signal potential difficulties in meeting short-term obligations.
It is worth noting that the company experienced a significant spike in the cash ratio in the March 31, 2021 period, where it reached 16.43. This could have been influenced by a significant increase in cash reserves or a decrease in current liabilities during that period.
Overall, a consistent analysis of the cash ratio along with other liquidity ratios and a deeper dive into the company's financial statements would provide a more comprehensive understanding of Hims Hers Health Inc's liquidity position and financial health.