National HealthCare Corporation (NHC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 76,121 | 107,076 | 58,667 | 107,607 | 147,093 |
| Short-term investments | US$ in thousands | 140,064 | 116,544 | 123,922 | 148,418 | 176,352 |
| Total current liabilities | US$ in thousands | 234,797 | 214,476 | 197,887 | 263,201 | 281,228 |
| Cash ratio | 0.92 | 1.04 | 0.92 | 0.97 | 1.15 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($76,121K
+ $140,064K)
÷ $234,797K
= 0.92
The cash ratio of National HealthCare Corporation has shown some fluctuation over the past five years. It was at its highest in December 31, 2020, with a value of 1.15, indicating that the company had $1.15 in cash for every $1 of current liabilities. Since then, the cash ratio has generally decreased, reaching its lowest point of 0.92 in December 31, 2022, before slightly recovering to 1.04 by December 31, 2023. However, by December 31, 2024, the cash ratio fell back to 0.92.
Overall, a cash ratio above 1 implies that the company has more cash on hand than current liabilities, which can be seen as a positive sign of liquidity and the company's ability to meet its short-term obligations. However, the downward trend in the cash ratio over the years may indicate a potential strain on liquidity management or a decrease in available cash relative to short-term liabilities. It would be essential for National HealthCare Corporation to closely monitor its cash position and ensure it maintains adequate liquidity levels to meet its financial obligations efficiently.
Peer comparison
Dec 31, 2024