Molina Healthcare Inc (MOH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,848,000 | 4,006,000 | 4,438,000 | 4,154,000 | 2,452,000 |
| Short-term investments | US$ in thousands | 4,259,000 | 3,499,000 | 3,202,000 | 1,875,000 | 1,946,000 |
| Total current liabilities | US$ in thousands | 8,168,000 | 6,855,000 | 7,047,000 | 4,965,000 | 3,269,000 |
| Cash ratio | 1.11 | 1.09 | 1.08 | 1.21 | 1.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,848,000K
+ $4,259,000K)
÷ $8,168,000K
= 1.11
The cash ratio of Molina Healthcare Inc has shown a fluctuating trend over the past five years. The ratio stood at 0.56 as of December 31, 2023, which indicates that the company had $0.56 in cash and cash equivalents available for every $1 of current liabilities. This represents a slight increase from the previous year's ratio of 0.55.
Looking back, the cash ratio was 0.49 in 2021, 0.41 in 2020, and 0.65 in 2019. The company's cash ratio has generally improved since 2020, suggesting a strengthening liquidity position. However, the ratio dipped in 2021 before bouncing back in subsequent years.
Overall, a cash ratio above 1.0 is often considered desirable as it indicates that a company can cover its short-term liabilities with cash on hand. Molina Healthcare Inc's cash ratio below 1.0 in each period suggests that the company may need to rely on other sources of liquidity, such as investments or borrowing, to meet its short-term financial obligations. Investors and analysts should continue to monitor Molina Healthcare Inc's cash ratio alongside other liquidity metrics to assess the company's ability to manage its short-term financial commitments.
Peer comparison
Dec 31, 2023