National HealthCare Corporation (NHC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.81 | 1.80 | 2.06 | 2.02 | 1.89 | 1.87 | 1.86 | 1.84 | 1.79 | 1.64 | 1.76 | 1.77 | 1.62 | 1.65 | 1.71 | 1.75 | 1.62 | 1.63 | 1.49 | 1.41 |
| Quick ratio | 1.50 | 1.53 | 1.75 | 1.66 | 1.55 | 1.53 | 1.49 | 1.46 | 1.43 | 1.31 | 1.43 | 1.42 | 1.34 | 1.38 | 1.45 | 1.59 | 1.47 | 1.54 | 1.37 | 1.29 |
| 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 |
National HealthCare Corporation's liquidity ratios have shown a generally positive trend over the past few years.
1. Current Ratio: The current ratio has consistently been above 1, indicating that the company has more than enough current assets to cover its current liabilities. The ratio increased from 1.41 in March 2020 to 2.02 in March 2024, showing a strengthening liquidity position.
2. Quick Ratio: The quick ratio, which is a more conservative measure of liquidity excluding inventory, also remained above 1 during the period. The ratio ranged from 1.29 in March 2020 to 1.75 in June 2024, signaling the company's ability to meet its short-term obligations without relying on inventory.
3. Cash Ratio: The cash ratio, a stringent measure of liquidity focusing only on cash and near-cash assets, fluctuated but generally stayed above 1. This implies that the company has sufficient cash reserves to cover its immediate liabilities. The ratio ranged from 0.82 in March 2020 to 1.24 in June 2024, indicating a healthy cash position overall.
Overall, National HealthCare Corporation's liquidity ratios suggest that the company has maintained a strong liquidity position over the years, with adequate resources to meet its short-term obligations.
Additional liquidity measure
| 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 conversion cycle | days | 24.72 | 23.30 | 18.59 | 23.75 | 20.67 | 21.88 | 22.57 | 23.80 | 20.71 | 19.38 | 14.91 | 16.27 | 16.36 | 12.53 | 18.31 | 24.19 | 16.78 | 15.44 | 15.59 | 22.86 |
The cash conversion cycle of National HealthCare Corporation has shown varying trends over the analyzed periods. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows through sales.
In the period from March 31, 2020, to June 30, 2020, the company improved its cash conversion cycle significantly from 22.86 days to 15.59 days, indicating a faster conversion of investments into cash. However, this trend was not sustained as the cycle increased slightly to 16.78 days by December 31, 2020.
Subsequently, National HealthCare Corporation managed to reduce its cash conversion cycle to 12.53 days by September 30, 2021, representing an efficient management of working capital. The cycle increased slightly in the following periods but remained relatively lower than the initial levels.
By December 31, 2024, the cash conversion cycle had reached 24.72 days, indicating a longer period for the company to convert its investments into cash. It is important for the company to monitor this cycle and manage its working capital effectively to ensure liquidity and efficient operations.