HealthStream Inc (HSTM)

Cash ratio

		Dec 31, 2024	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	59,469	57,489	46,131	52,407	40,333	44,123	25,805	48,836	46,023	48,257	37,216	43,370	46,905	55,459	49,792	45,348	36,566	107,007	112,534	107,425
Short-term investments	US$ in thousands	37,748	37,404	36,869	31,265	30,800	27,691	30,158	9,818	7,885	3,587	2,000	2,008	5,041	5,095	5,349	10,622	9,928	42,666	31,989	34,585
Total current liabilities	US$ in thousands	115,693	110,572	111,883	126,070	118,361	114,582	109,151	121,004	117,213	105,390	104,914	114,562	100,350	101,950	105,918	116,906	119,442	95,014	92,442	102,474
Cash ratio		0.84	0.86	0.74	0.66	0.60	0.63	0.51	0.48	0.46	0.49	0.37	0.40	0.52	0.59	0.52	0.48	0.39	1.58	1.56	1.39

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 fluctuations over the past few years, ranging from a low of 0.37 on June 30, 2022, to a high of 1.58 on September 30, 2020. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The trend indicates that HealthStream Inc's liquidity position improved in the latter part of 2020 but deteriorated towards the end of 2021 and early 2022. The company's cash ratio recovered from its low point in mid-2022 and has been increasing steadily since then, reaching 0.84 on December 31, 2024.

Overall, the cash ratio suggests that HealthStream Inc has been able to maintain a relatively stable level of liquidity, though there have been periods of stronger and weaker liquidity positions. It is essential for the company to monitor its cash reserves and manage its liquidity effectively to ensure it can meet its short-term obligations.