Molina Healthcare Inc (MOH)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands 3,299,000 3,104,000 2,302,000 2,177,000 1,672,000
Total current liabilities US$ in thousands 7,896,000 8,168,000 6,855,000 7,047,000 4,965,000
Quick ratio 1.56 1.49 1.43 1.39 1.55

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,662,000K + $4,325,000K + $3,299,000K) ÷ $7,896,000K
= 1.56

The quick ratio of Molina Healthcare Inc has shown a stable trend over the past five years. As of December 31, 2020, the quick ratio stood at 1.55, indicating that the company had $1.55 in liquid assets available to cover each dollar of current liabilities. Although there was a slight decrease in the quick ratio to 1.39 by the end of December 31, 2021, it remained above the industry benchmark of 1. A subsequent increase to 1.43 by December 31, 2022, and further to 1.49 by December 31, 2023, demonstrated an improvement in the company's liquidity position. Notably, the quick ratio reached 1.56 as of December 31, 2024, indicating that Molina Healthcare Inc has maintained a healthy level of liquid assets to meet its short-term obligations throughout the years. Overall, the company's quick ratio reflects a sound liquidity position and ability to meet its current liabilities efficiently.