National HealthCare Corporation (NHC)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 76,121 | 84,807 | 136,214 | 93,982 | 107,076 | 100,308 | 78,492 | 46,144 | 58,667 | 44,515 | 75,798 | 56,993 | 107,607 | 112,462 | 134,692 | 134,107 | 147,093 | 183,765 | 149,471 | 69,492 |
| Short-term investments | US$ in thousands | 140,064 | 164,754 | 133,805 | 123,524 | 116,544 | 110,186 | 114,952 | 118,647 | 123,922 | 132,214 | 144,033 | 149,035 | 148,418 | 142,483 | 162,317 | 184,738 | 176,352 | 131,122 | 122,379 | 108,746 |
| Total current liabilities | US$ in thousands | 234,797 | 247,946 | 216,935 | 206,429 | 214,476 | 204,694 | 197,798 | 183,210 | 197,887 | 210,156 | 224,365 | 216,487 | 263,201 | 257,670 | 273,012 | 265,846 | 281,228 | 259,673 | 262,142 | 217,982 |
| Cash ratio | 0.92 | 1.01 | 1.24 | 1.05 | 1.04 | 1.03 | 0.98 | 0.90 | 0.92 | 0.84 | 0.98 | 0.95 | 0.97 | 0.99 | 1.09 | 1.20 | 1.15 | 1.21 | 1.04 | 0.82 |
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 few years, ranging from a low of 0.82 to a high of 1.24. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
A cash ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, with a higher ratio suggesting a healthier financial position. Conversely, a ratio below 1 may indicate liquidity issues and a potential inability to meet short-term obligations.
Based on the data provided, the cash ratio has generally been above 1 since June 2020, indicating that National HealthCare Corporation has maintained a relatively strong ability to cover its short-term liabilities with its cash holdings. However, there have been some fluctuations in the ratio over time, with a slight decrease in the most recent periods.
Overall, a cash ratio above 1 is generally considered favorable as it signifies that the company has a sufficient amount of cash to meet its short-term obligations. Investors and analysts may continue to monitor the company's cash ratio to assess its liquidity position and financial health.
Peer comparison
Dec 31, 2024