Mednax Inc (MD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 434,110 | 388,946 | 374,225 | 394,118 | 423,157 |
| Quick ratio | 0.80 | 0.46 | 0.28 | 1.24 | 2.90 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($229,940K
+ $118,566K
+ $—K)
÷ $434,110K
= 0.80
The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
For Mednax Inc, the trend in the quick ratio over the past five years shows a decline from 2.90 in December 2020 to 0.80 in December 2024. This declining trend indicates a decreasing ability to cover its short-term liabilities with its liquid assets.
A quick ratio above 1.0 is generally considered healthy, indicating that a company can cover its current liabilities with its quick assets. However, Mednax Inc's quick ratio has fallen below 1.0 over the past three years, signaling potential liquidity concerns.
The significant drop in the quick ratio from 2020 to 2022, where it dropped to 0.28, suggests a potential strain on the company's liquidity position. The subsequent slight improvements in 2023 and 2024 to 0.46 and 0.80, respectively, indicate some efforts to address liquidity issues but still remain below the ideal threshold of 1.0.
Overall, Mednax Inc's declining quick ratio trend raises concerns about its short-term liquidity position and suggests the need for careful monitoring and management of liquidity levels to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024