HealthStream Inc (HSTM)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.32 | 1.10 | 0.98 | 1.06 | 0.96 |
| Quick ratio | 0.84 | 0.60 | 0.46 | 0.52 | 0.39 |
| Cash ratio | 0.84 | 0.60 | 0.46 | 0.52 | 0.39 |
HealthStream Inc's liquidity ratios have shown a generally improving trend over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, increased from 0.96 in December 2020 to 1.32 in December 2024. This indicates that HealthStream's short-term liquidity position has strengthened over the years.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. This ratio increased from 0.39 in December 2020 to 0.84 in December 2024, reflecting an improvement in the company's ability to meet its short-term liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, showed the same improving trend from 0.39 in December 2020 to 0.84 in December 2024. This indicates that HealthStream has a stronger ability to cover its short-term obligations solely with its cash resources.
Overall, the increasing trends in these liquidity ratios suggest that HealthStream Inc has been managing its liquidity effectively and is in a better position to meet its short-term financial obligations over the years.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle for HealthStream Inc has been consistently reported as 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flow and working capital. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. With a cash conversion cycle of 0.00 days, HealthStream Inc is able to quickly convert its sales back into cash, suggesting effective inventory management, efficient sales processes, and strong cash flow management. A lower cash conversion cycle generally indicates better liquidity and financial health for a company, as it reflects the company's ability to efficiently manage its working capital.