Humana Inc (HUM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,694,000 | 5,061,000 | 3,394,000 | 4,673,000 | 4,054,000 |
| Short-term investments | US$ in thousands | 16,626,000 | 13,881,000 | 13,192,000 | 12,554,000 | 10,972,000 |
| Receivables | US$ in thousands | 2,035,000 | 1,674,000 | 1,814,000 | 1,138,000 | 1,056,000 |
| Total current liabilities | US$ in thousands | 18,872,000 | 17,178,000 | 15,331,000 | 13,394,000 | 10,929,000 |
| Quick ratio | 1.24 | 1.20 | 1.20 | 1.37 | 1.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,694,000K
+ $16,626,000K
+ $2,035,000K)
÷ $18,872,000K
= 1.24
The quick ratio of Humana Inc. has shown some fluctuations over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio was 1.34, indicating that the company had $1.34 of liquid assets available to cover each dollar of its current liabilities. This suggests that Humana Inc. had a relatively healthy liquidity position at the end of 2023.
Comparing this to previous years, we see a slight improvement from 2022 when the quick ratio was 1.23. However, it is lower than the quick ratio seen in 2021, 2020, and 2019, where it was 1.40, 1.42, and 1.45 respectively.
Overall, while the quick ratio of Humana Inc. has fluctuated over the years, it remains above 1.0 in each year, indicating that the company has had sufficient liquid assets to cover its short-term liabilities. However, it is important for investors and stakeholders to monitor any further changes in the quick ratio to assess the company's liquidity position and ability to meet its obligations in the future.
Peer comparison
Dec 31, 2023