Hims Hers Health Inc (HIMS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 6,700 | 3,900 | 4,100 | 1,100 | — |
| Total current liabilities | US$ in thousands | 88,468 | 47,941 | 79,221 | 15,228 | 979 |
| Quick ratio | 2.57 | 3.83 | 3.17 | 6.65 | 40.07 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($96,663K
+ $124,318K
+ $6,700K)
÷ $88,468K
= 2.57
The quick ratio of Hims Hers Health Inc has shown fluctuations over the past five years. The quick ratio was relatively stable around the range of 3 to 4 from 2019 to 2022, indicating that the company had a comfortable level of highly liquid assets to cover its current liabilities in the short term.
However, there was a significant decrease in the quick ratio to 2.57 in 2023, which may suggest a decline in the company's ability to cover its short-term obligations with its most liquid assets. It is important to investigate the reasons behind this decrease, as a lower quick ratio could indicate potential liquidity challenges or inefficiencies in managing short-term obligations.
Furthermore, the quick ratio of 6.65 in 2020 and an exceptionally high ratio of 40.07 in 2019 are striking. These very high ratios could imply that the company had an unusually large amount of highly liquid assets in relation to its current liabilities during those years. It would be essential to understand the specific circumstances or events that led to such high quick ratios in those years.
In conclusion, while the quick ratio of Hims Hers Health Inc has fluctuated over the past five years, the recent decrease in 2023 warrants further investigation to assess the company's short-term liquidity position and financial health.