HealthStream Inc (HSTM)

Quick 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
Cash	US$ in thousands	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	131,538	133,914	120,849	110,610
Short-term investments	US$ in thousands	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	41,328	38,724	40,737	36,322
Receivables	US$ in thousands	38,446	34,805	40,879	47,288	42,710	32,670	34,901	40,788	34,920	30,745	32,454	37,183	46,100	30,305	33,865	34,755	30,376	28,254	29,836	40,588
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,333K + $30,800K + $38,446K) ÷ $118,361K
= 0.93

The quick ratio of Healthstream Inc has shown fluctuations over the past eight quarters, ranging from 0.91 to 1.11. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio of 1 or higher is generally considered satisfactory, indicating that the company has enough liquid assets to cover its current liabilities.

Healthstream Inc's quick ratio has generally been above 1 over the past two years, suggesting that the company has sufficient liquid assets to meet its short-term obligations. However, there have been some fluctuations in the quick ratio, with the ratio reaching a low of 0.91 in Q2 2022 and a high of 1.11 in Q3 2023. These fluctuations may indicate changes in the company's liquidity position or management of its current assets and liabilities.

Overall, Healthstream Inc's quick ratio shows a relatively stable financial position, with the company maintaining a level of liquidity that allows it to meet its short-term obligations. However, it is important for the company to continue monitoring its liquidity position and ensure that it maintains a healthy balance between liquid assets and current liabilities.