Molina Healthcare Inc (MOH)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.54 | 1.47 | 1.52 | 1.47 | 1.47 | 1.45 | 1.43 | 1.44 | 1.43 | 1.54 | 1.55 | 1.56 | 1.59 | 1.96 | 1.88 | 1.77 | 1.83 | 1.78 | 1.73 | 1.57 |
| Quick ratio | 1.49 | 1.43 | 1.48 | 1.43 | 1.43 | 1.39 | 1.40 | 1.41 | 1.39 | 1.51 | 1.53 | 1.53 | 1.55 | 1.90 | 1.81 | 1.67 | 1.78 | 1.73 | 1.64 | 1.42 |
| Cash ratio | 1.11 | 1.14 | 1.17 | 1.10 | 1.09 | 1.09 | 1.09 | 1.11 | 1.08 | 1.20 | 1.20 | 1.20 | 1.21 | 1.40 | 1.39 | 1.23 | 1.35 | 1.34 | 1.28 | 1.10 |
Molina Healthcare Inc's liquidity ratios have shown consistency and improvement over the quarters analyzed. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has generally been above 1, indicating a healthy liquidity position. The current ratio has shown a slight increasing trend, reaching 1.54 in Q4 2023.
The quick ratio, which provides a more stringent measure by excluding inventory from current assets, has also demonstrated improvement over time. Although the quick ratio has been below 1, suggesting potential issues with inventory turnover, it has increased from 0.76 in Q1 2022 to 0.94 in Q4 2023, showing enhanced liquidity.
Furthermore, the cash ratio, reflecting the company's ability to cover immediate liabilities with cash and cash equivalents, has been relatively stable and above 0.5 in most quarters. Although the cash ratio dipped in Q1 2022 to 0.45, it has generally been maintained above this level, with the latest figure standing at 0.56 in Q4 2023.
Overall, Molina Healthcare Inc's liquidity ratios indicate a strong ability to meet short-term obligations, improve cash flow management, and ensure financial stability. However, the company should continue monitoring these ratios to sustain its liquidity position in the long term.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 33.25 | 27.01 | 26.68 | 28.61 | 26.28 | 26.00 | 27.01 | 27.12 | 28.61 | 27.26 | 28.75 | 30.30 | 31.42 | 35.09 | 32.61 | 33.90 | 30.49 | 27.13 | 25.59 | 27.01 |
The cash conversion cycle of Molina Healthcare Inc has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 33.25 days from 27.01 days in Q3 2023. This indicates that it took the company longer to convert its investments in inventory and accounts receivable into cash during this period.
Compared to the same quarter in the previous year, Q4 2022, the cash conversion cycle has increased from 26.28 days to 33.25 days, showing a decline in efficiency in managing its working capital. However, the cycle in Q4 2023 is still lower than the cycle in Q2 2023 and Q1 2023, which were 26.68 days and 28.61 days, respectively.
Overall, Molina Healthcare Inc should focus on reducing its cash conversion cycle to improve its liquidity and operating efficiency. By managing its inventory levels and accounts receivable effectively, the company can shorten the time it takes to convert its investments into cash and improve its overall financial health.