Hims Hers Health Inc (HIMS)
Current 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 326,375 | 290,918 | 261,734 | 265,053 | 250,219 | 234,648 | 225,525 | 216,595 | 233,455 | 230,485 | 231,946 | 269,905 | 274,233 | 336,342 | 340,196 | 113,084 | 1,333 | 1,476 | 1,599 | 1,658 |
| 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 | 979 |
| Current ratio | 2.14 | 2.68 | 2.80 | 3.00 | 3.03 | 3.53 | 4.01 | 4.52 | 3.49 | 4.14 | 4.78 | 3.41 | 5.22 | 12.30 | 17.29 | 7.43 | 0.44 | 1.26 | 1.37 | 1.69 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $326,375K ÷ $152,645K
= 2.14
The current ratio of Hims Hers Health Inc has exhibited fluctuations over the periods provided. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, ranged from a low of 0.44 in the third quarter of 2020 to a high of 17.29 in the first quarter of 2021.
In recent quarters, the current ratio has generally been above 2, indicating that the company has a healthy level of current assets to cover its short-term obligations. However, there have been some periods where the current ratio dropped significantly, possibly indicating a temporary strain on liquidity.
The company experienced a significant improvement in its current ratio from 2020 to 2021, with a sharp increase from 0.44 in the third quarter of 2020 to 17.29 in the first quarter of 2021. This significant improvement suggests that the company effectively managed its short-term assets and liabilities during this period.
It is noteworthy that the current ratio saw a notable decline in the most recent quarter, dropping from 4.14 in the second quarter of 2024 to 2.14 in the third quarter of 2024. This decrease may raise concerns about the company's liquidity position, although further analysis would be needed to determine the underlying reasons for this change and its potential impact on the business.
Overall, while the current ratio of Hims Hers Health Inc has fluctuated over time, it generally indicates a healthy liquidity position, with the company being able to meet its short-term obligations with its current assets.