HealthStream Inc (HSTM)
Cash ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 59,469 | 40,333 | 46,023 | 46,905 | 36,566 |
Short-term investments | US$ in thousands | 37,748 | 30,800 | 7,885 | 5,041 | 9,928 |
Total current liabilities | US$ in thousands | 115,693 | 118,361 | 117,213 | 100,350 | 119,442 |
Cash ratio | 0.84 | 0.60 | 0.46 | 0.52 | 0.39 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($59,469K
+ $37,748K)
÷ $115,693K
= 0.84
HealthStream Inc's cash ratio has shown an increasing trend over the past five years, reaching 0.84 as of December 31, 2024, indicating the company holds a higher level of cash and cash equivalents relative to its current liabilities. This suggests that the company has improved its ability to cover its short-term obligations with its available cash reserves. However, it is important to note that a very high cash ratio may also indicate an inefficient use of cash resources, as excess cash may be better utilized elsewhere for growth or investment purposes. Overall, HealthStream Inc's increasing cash ratio demonstrates a strengthening liquidity position, enhancing its ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024