HealthStream Inc (HSTM)

Liquidity ratios

	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
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
Quick ratio	0.93	0.93	0.89	0.88	0.82	0.80	0.71	0.75	0.87	0.90	0.83	0.80	0.78	1.89	1.93	1.72	1.93	2.01	1.95	1.69
Cash ratio	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	1.64	1.73	1.64	1.32

Healthstream Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has generally been around or above 1, indicating that the company has been able to cover its short-term liabilities. However, there was some variability with the ratio ranging from 0.94 to 1.11 during this period.

Similarly, the quick ratio, also known as the acid-test ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has followed a similar trend to the current ratio. This suggests that Healthstream Inc has maintained a relatively stable ability to meet its short-term obligations without relying on inventory liquidation.

The cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has also shown variability, ranging from 0.58 to 0.80 over the quarters analyzed. This indicates that the company's liquidity position in terms of just cash on hand has fluctuated somewhat.

Overall, while the current, quick, and cash ratios have shown some fluctuations, Healthstream Inc has generally maintained a reasonable level of liquidity to meet its short-term obligations over the past eight quarters. It would be essential for the company to continue monitoring and managing its liquidity position effectively to ensure ongoing financial stability.

Additional liquidity measure

		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
Cash conversion cycle	days	36.10	39.64	54.46	63.83	45.18	45.41	49.11	57.57	40.29	44.15	47.20	55.01	50.61	45.02	49.99	50.64	32.00	41.05	43.79	61.23

The cash conversion cycle (CCC) of Healthstream Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company's CCC was 21.61 days, indicating that on average it takes about 21.61 days for Healthstream to convert its investments in inventory and other resources into cash flow from sales. This represents an improvement compared to the previous quarter where the CCC was 32.27 days.

Looking back, the company's CCC has varied significantly, reaching its peak in Q1 2023 at 63.83 days, which suggests that Healthstream took longer to convert its resources into cash during that period. However, there was a notable improvement in Q2 and Q3 2023, with the CCC decreasing to 54.46 days and 32.27 days respectively.

Comparing the Q4 2023 CCC to the same quarter in the previous year (Q4 2022), there has been a slight improvement from 29.24 days to 21.61 days, indicating that Healthstream has become more efficient in managing its cash flow over the past year.

Overall, while there have been fluctuations in Healthstream Inc's cash conversion cycle, the recent trend shows a positive development in terms of efficiently managing its working capital and converting resources into cash. It is essential for the company to continue monitoring and optimizing its CCC to ensure continued financial health and operational efficiency.