Molina Healthcare Inc (MOH)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.62 | 1.55 | 1.57 | 1.49 | 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 |
| Quick ratio | 1.56 | 1.50 | 1.52 | 1.44 | 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 |
| Cash ratio | 1.14 | 1.11 | 1.11 | 1.05 | 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 |
The current ratio for Molina Healthcare Inc has shown a declining trend over the past few years, starting at 1.77 in March 2020 and decreasing to 1.62 by December 2024. This indicates that the company's ability to meet its short-term obligations with current assets has slightly weakened over time.
Similarly, the quick ratio has also decreased from 1.67 in March 2020 to 1.56 by December 2024. This ratio excludes inventories from current assets, providing a more conservative measure of liquidity. The declining trend in the quick ratio suggests that Molina Healthcare's immediate liquidity position has slightly deteriorated.
On the other hand, the cash ratio has been relatively stable, ranging between 1.05 and 1.23 over the same period. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents alone. The consistent cash ratio indicates that Molina Healthcare has maintained a steady level of true cash liquidity throughout the years.
Overall, while the current and quick ratios have shown a slight decline, the cash ratio stability suggests that Molina Healthcare Inc has maintained a reasonable level of liquidity and should be able to meet its short-term obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 29.62 | 30.35 | 31.53 | 34.10 | 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 |
The cash conversion cycle of Molina Healthcare Inc has displayed a generally decreasing trend from March 2020 to December 2024, indicating improved efficiency in managing its cash flow and working capital. The company's cash conversion cycle decreased from 33.90 days in March 2020 to 29.62 days in December 2024.
During this period, Molina Healthcare was able to convert its investments in inventory and accounts receivable into cash more quickly. A lower cash conversion cycle suggests that the company is efficiently managing its cash inflows and outflows, improving liquidity and overall financial health.
However, there were fluctuations in the cash conversion cycle over certain quarters, possibly due to seasonal variations in business activities, changes in payment terms, or shifts in inventory management strategies. It is important for Molina Healthcare to continue monitoring and evaluating its cash conversion cycle to ensure optimal efficiency in its cash management operations.