Mednax Inc (MD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 229,940 | 73,258 | 9,824 | 387,391 | 1,123,840 |
| Short-term investments | US$ in thousands | 118,566 | 104,485 | 93,239 | 99,715 | 104,870 |
| Total current liabilities | US$ in thousands | 434,110 | 388,946 | 374,225 | 394,118 | 423,157 |
| Cash ratio | 0.80 | 0.46 | 0.28 | 1.24 | 2.90 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($229,940K
+ $118,566K)
÷ $434,110K
= 0.80
The cash ratio of Mednax Inc has shown a downward trend over the past few years. In December 2020, the cash ratio was at a healthy level of 2.90, indicating that the company had a significant amount of cash and cash equivalents to cover its current liabilities. However, by December 2021, the cash ratio decreased to 1.24, which suggests a reduction in the company's liquidity position.
Subsequently, in December 2022, the cash ratio further declined to 0.28, indicating a significant decrease in the company's ability to cover its short-term obligations solely with its cash on hand. This low ratio may raise concerns about the company's liquidity and ability to meet its financial obligations promptly.
However, there was a slight improvement in the cash ratio by December 2023, which increased to 0.46. While this improvement is positive, the ratio still remains relatively low, indicating that the company may continue to face challenges in meeting its short-term commitments with its available cash.
By December 2024, the cash ratio increased to 0.80, showing a further improvement in the company's liquidity position. Despite this improvement, the cash ratio is still below the ideal level of 1.0, suggesting that Mednax Inc may need to strengthen its cash position to enhance its ability to meet short-term obligations comfortably.
Overall, the fluctuating cash ratio of Mednax Inc indicates variability in the company's liquidity position over the years, highlighting the importance of closely monitoring its cash management and working capital practices to ensure financial stability and operational efficiency.
Peer comparison
Dec 31, 2024