HealthStream Inc (HSTM)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	153,122	130,210	114,377	106,845	114,725
Total current liabilities	US$ in thousands	115,693	118,361	117,213	100,350	119,442
Current ratio		1.32	1.10	0.98	1.06	0.96

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $153,122K ÷ $115,693K
= 1.32

HealthStream Inc's current ratio has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio was 0.96, which indicates that the company may have had difficulties meeting its short-term obligations with its current assets at that time.

However, by December 31, 2021, the current ratio improved to 1.06, suggesting that HealthStream Inc was in a slightly better position to cover its short-term liabilities with its current assets. The ratio then dipped slightly to 0.98 by December 31, 2022, indicating a potential liquidity challenge.

Subsequently, HealthStream Inc's current ratio increased to 1.10 by December 31, 2023, signaling an improvement in the company's ability to meet its short-term obligations. By December 31, 2024, the current ratio further improved to 1.32, reflecting a healthier liquidity position for the company.

Overall, the trend in HealthStream Inc's current ratio shows some variability, with periods of weakness followed by periods of improvement. It is essential for the company to maintain a current ratio above 1 to ensure it can easily cover its short-term liabilities with its current assets.