National HealthCare Corporation (NHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 406,235 | 353,932 | 426,638 | 456,755 | 341,053 |
| Total current liabilities | US$ in thousands | 214,476 | 197,887 | 263,201 | 281,228 | 194,763 |
| Current ratio | 1.89 | 1.79 | 1.62 | 1.62 | 1.75 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $406,235K ÷ $214,476K
= 1.89
The current ratio of National Healthcare Corp. has shown a fluctuating trend over the past five years, ranging from 1.62 in 2021 and 2020 to a high of 1.89 in 2023. This ratio indicates the company's ability to meet its short-term obligations with its current assets. Generally, a current ratio above 1 is considered healthy, as it suggests that the company has sufficient current assets to cover its current liabilities.
The increasing trend in the current ratio from 2020 to 2023 is a positive sign, indicating an improvement in the company's liquidity position over time. However, it is essential to keep in mind that a very high current ratio may also indicate that the company is not efficiently utilizing its current assets.
Further analysis and comparison with industry benchmarks and historical trends can provide more insights into the effectiveness of National Healthcare Corp.'s current asset management and its overall financial health.
Peer comparison
Dec 31, 2023