Humana Inc (HUM)
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 | 4,694,000 | 15,148,000 | 16,214,000 | 13,735,000 | 5,061,000 | 13,558,000 | 5,153,000 | 4,864,000 | 3,394,000 | 4,304,000 | 3,378,000 | 3,877,000 | 4,673,000 | 7,985,000 | 7,163,000 | 6,054,000 | 4,054,000 | 5,527,000 | 4,778,000 | 3,877,000 |
| Short-term investments | US$ in thousands | 16,626,000 | 15,145,000 | 15,251,000 | 14,932,000 | 13,881,000 | 13,124,000 | 13,037,000 | 13,092,000 | 13,192,000 | 13,719,000 | 13,471,000 | 13,251,000 | 12,554,000 | 12,741,000 | 12,836,000 | 11,104,000 | 10,972,000 | 10,460,000 | 9,991,000 | 9,876,000 |
| Receivables | US$ in thousands | 2,035,000 | 1,824,000 | 1,429,000 | 3,107,000 | 1,674,000 | 1,609,000 | 3,369,000 | 3,174,000 | 1,814,000 | 1,879,000 | 2,438,000 | 2,196,000 | 1,138,000 | 1,135,000 | 2,238,000 | 2,009,000 | 1,056,000 | 848,000 | 904,000 | 1,955,000 |
| Total current liabilities | US$ in thousands | 18,872,000 | 27,823,000 | 28,279,000 | 26,942,000 | 17,178,000 | 25,051,000 | 17,839,000 | 17,532,000 | 15,331,000 | 15,027,000 | 15,051,000 | 15,300,000 | 13,394,000 | 14,905,000 | 16,455,000 | 14,830,000 | 10,929,000 | 11,106,000 | 11,539,000 | 11,927,000 |
| Quick ratio | 1.24 | 1.15 | 1.16 | 1.18 | 1.20 | 1.13 | 1.21 | 1.21 | 1.20 | 1.32 | 1.28 | 1.26 | 1.37 | 1.47 | 1.35 | 1.29 | 1.47 | 1.52 | 1.36 | 1.32 |
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 measures Humana Inc.'s ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates the company has enough liquid assets to cover its current liabilities.
Looking at the trend in Humana Inc.'s quick ratio over the past eight quarters, we observe fluctuations. In Q4 2023, the quick ratio improved significantly to 1.34 from 0.83 in Q3 2023. This indicates a stronger ability to cover short-term liabilities with liquid assets. However, the quick ratio was lower in Q2 2023 and Q1 2023 at 0.80 and 0.88 respectively.
Comparing to previous quarters, the quick ratio in Q4 2023 is above the levels seen in Q1 and Q2 of 2022. It is also higher than Q3 2022 when it was 1.23. This suggests that Humana Inc. has enhanced its liquidity position in the latest quarter.
Overall, the improvement in the quick ratio in Q4 2023 reflects positively on Humana Inc.'s ability to meet its short-term obligations with its liquid assets. However, it is essential to monitor future trends to ensure consistent liquidity management.
Peer comparison
Dec 31, 2023