Mednax Inc (MD)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 229,940 | 103,831 | 19,402 | 7,998 | 73,258 | 21,179 | 5,849 | 6,124 | 9,824 | 8,668 | 14,088 | 7,179 | 387,391 | 357,914 | 338,157 | 269,630 | 1,123,840 | 294,512 | 132,151 | 312,155 |
| Short-term investments | US$ in thousands | 118,566 | 116,621 | 113,795 | 107,473 | 104,485 | 103,541 | 98,490 | 96,709 | 93,239 | 91,396 | 93,386 | 89,576 | 99,715 | 98,510 | 100,763 | 100,811 | 104,870 | 81,574 | 90,642 | 85,041 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 434,110 | 373,080 | 310,156 | 207,035 | 388,946 | 350,444 | 320,318 | 226,675 | 374,225 | 351,694 | 287,463 | 269,727 | 394,118 | 397,564 | 351,105 | 326,958 | 423,157 | 488,364 | 383,933 | 346,400 |
| Quick ratio | 0.80 | 0.59 | 0.43 | 0.56 | 0.46 | 0.36 | 0.33 | 0.45 | 0.28 | 0.28 | 0.37 | 0.36 | 1.24 | 1.15 | 1.25 | 1.13 | 2.90 | 0.77 | 0.58 | 1.15 |
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, also known as the acid-test ratio, measures a company's ability to pay its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating the company can easily cover its current liabilities.
Analyzing the quick ratio trend of Mednax Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's liquidity position. The quick ratio started at 1.15 in March 2020, indicating a strong ability to meet short-term obligations. However, it dropped to 0.58 by June 2020, reflecting a potential liquidity strain.
The ratio improved to 2.90 by December 2020, signaling a significant increase in liquidity levels. Subsequently, the quick ratio fluctuated around 1.00 over the following quarters, showing relative stability in the company's ability to meet short-term obligations.
From March 31, 2022, the quick ratio declined significantly to 0.36, reaching its lowest point during the period analyzed. This indicates a potential liquidity challenge for Mednax Inc at that time. The ratio slightly recovered but remained below 1.00 until December 31, 2024, when it improved to 0.80.
Overall, the trend of Mednax Inc's quick ratio suggests fluctuations in liquidity levels over the analyzed period. Investors and stakeholders should continue to monitor the company's ability to cover its short-term liabilities with its liquid assets to assess its financial health and risk profile.
Peer comparison
Dec 31, 2024