Molina Healthcare Inc (MOH)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 4,662,000 4,848,000 4,006,000 4,438,000 4,154,000
Short-term investments US$ in thousands 4,325,000 4,259,000 3,499,000 3,202,000 1,875,000
Total current liabilities US$ in thousands 7,896,000 8,168,000 6,855,000 7,047,000 4,965,000
Cash ratio 1.14 1.11 1.09 1.08 1.21

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,662,000K + $4,325,000K) ÷ $7,896,000K
= 1.14

The cash ratio of Molina Healthcare Inc has remained relatively stable over the period from December 31, 2020, to December 31, 2024, fluctuating within a narrow range between 1.08 and 1.21. This indicates that the company has consistently maintained a healthy level of cash and cash equivalents relative to its current liabilities throughout the period, suggesting a strong ability to meet its short-term obligations with readily available liquid assets. The slight variations in the cash ratio over the years may reflect changes in the company's cash position and short-term liabilities but overall indicate a prudent approach to managing liquidity.