Molina Healthcare Inc (MOH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 3,104,000 | 2,302,000 | 2,177,000 | 1,672,000 | 1,406,000 |
| Total current liabilities | US$ in thousands | 8,168,000 | 6,855,000 | 7,047,000 | 4,965,000 | 3,269,000 |
| Quick ratio | 1.49 | 1.43 | 1.39 | 1.55 | 1.78 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,848,000K
+ $4,259,000K
+ $3,104,000K)
÷ $8,168,000K
= 1.49
The quick ratio of Molina Healthcare Inc has shown variations over the past five years. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From 2019 to 2021, the quick ratio declined from 1.08 to 0.80, indicating a decrease in liquidity. However, in 2022 and 2023, the ratio increased to 0.89 and 0.94, respectively.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone. Therefore, Molina Healthcare Inc may need to improve its liquidity position by either increasing its cash reserves or reducing its current liabilities.
Overall, Molina Healthcare Inc's quick ratio has fluctuated, indicating the need for careful management of liquidity and working capital to ensure financial stability and meet short-term obligations effectively.
Peer comparison
Dec 31, 2023