Humana Inc (HUM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,221,000 | 4,694,000 | 5,061,000 | 3,394,000 | 4,673,000 |
| Short-term investments | US$ in thousands | 18,214,000 | 16,626,000 | 13,881,000 | 13,192,000 | 12,554,000 |
| Total current liabilities | US$ in thousands | 16,939,000 | 18,872,000 | 17,178,000 | 15,331,000 | 13,394,000 |
| Cash ratio | 1.21 | 1.13 | 1.10 | 1.08 | 1.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,221,000K
+ $18,214,000K)
÷ $16,939,000K
= 1.21
The cash ratio of Humana Inc has shown a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In December 2020, the cash ratio stood at 1.29, indicating that Humana had $1.29 in cash and cash equivalents for each dollar of its short-term liabilities. However, by December 2021, the ratio had decreased to 1.08, suggesting a decline in the company's liquidity position.
Subsequently, the cash ratio improved slightly to 1.10 by December 2022 and further to 1.13 by December 2023, indicating a strengthening of Humana's ability to meet its short-term obligations with cash on hand.
By December 2024, the cash ratio had increased to 1.21, reflecting a positive trend in the company's liquidity position compared to the previous year. Overall, the fluctuations in Humana's cash ratio over the five-year period suggest varying levels of liquidity management and the company's ability to cover its short-term liabilities with available cash resources.
Peer comparison
Dec 31, 2024