HealthStream Inc (HSTM)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	130,210	126,879	118,013	125,108	114,377	104,351	95,333	107,226	106,845	112,256	110,167	114,977	114,725	199,097	198,680	200,656	224,572	222,967	214,481	223,742
Total current liabilities	US$ in thousands	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	105,185	99,699	98,313	110,982
Current ratio		1.10	1.11	1.08	1.03	0.98	0.99	0.91	0.94	1.06	1.10	1.04	0.98	0.96	2.10	2.15	1.96	2.14	2.24	2.18	2.02

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $130,210K ÷ $118,361K
= 1.10

Healthstream Inc's current ratio has shown fluctuations over the past eight quarters, ranging from 0.91 to 1.11. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger ability to meet short-term obligations.

In this case, Healthstream Inc's current ratio has generally been improving since Q1 2022 when it was at 0.94. It reached its peak in Q3 2023 at 1.11 before slightly decreasing to 1.10 in Q4 2023. Overall, the current ratio has been above 1 for the last five quarters, which indicates that the company likely has a sufficient level of current assets to cover its short-term liabilities.

However, it is also important to consider industry benchmarks and trends over time to fully assess the company's liquidity position. Additionally, a current ratio above 1 doesn't necessarily mean the company is in a strong financial position as it may have excess assets that are not efficiently utilized.