HealthStream Inc (HSTM)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands
Total current liabilities US$ in thousands 115,693 118,361 117,213 100,350 119,442
Quick ratio 0.84 0.60 0.46 0.52 0.39

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($59,469K + $37,748K + $—K) ÷ $115,693K
= 0.84

HealthStream Inc's quick ratio has shown fluctuation over the past five years. In December 2020, the quick ratio was 0.39, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets. However, by December 2024, the quick ratio had improved to 0.84, suggesting that HealthStream Inc had a stronger ability to cover its current liabilities with its quick assets.

Despite the fluctuations in the quick ratio over the years, it is crucial to note that a quick ratio above 1.0 is generally considered healthy as it indicates that a company has enough liquid assets to cover its current liabilities. HealthStream Inc's quick ratio has shown an increasing trend from 2020 to 2024, signifying an improvement in its short-term liquidity position.

Overall, monitoring the quick ratio over time can provide insights into HealthStream Inc's liquidity position and its ability to meet its short-term obligations. It is important for investors and stakeholders to continue to assess the company's financial health and liquidity management practices.