National HealthCare Corporation (NHC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 107,076 | 58,667 | 107,607 | 147,093 | 50,334 |
| Short-term investments | US$ in thousands | 116,544 | 123,922 | 148,418 | 176,352 | 173,029 |
| Total current liabilities | US$ in thousands | 214,476 | 197,887 | 263,201 | 281,228 | 194,763 |
| Cash ratio | 1.04 | 0.92 | 0.97 | 1.15 | 1.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($107,076K
+ $116,544K)
÷ $214,476K
= 1.04
The cash ratio of National Healthcare Corp. has fluctuated over the past five years, ranging from 0.97 to 1.16. A higher cash ratio indicates a company's ability to cover its short-term liabilities with its cash and cash equivalents. In the most recent year, as of December 31, 2023, the cash ratio stands at 1.08, suggesting that the company has a sufficient level of cash on hand to meet its short-term obligations. However, it is important to consider the specific industry norms and the company's unique operating requirements when evaluating the adequacy of its cash reserves.
Peer comparison
Dec 31, 2023