National HealthCare Corporation (NHC)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 1.75 1.94 1.87 1.92
Quick ratio 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 1.65 1.84 1.61 1.77
Cash ratio 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 1.15 1.31 1.03 1.17

The liquidity ratios of National Healthcare Corp. indicate the company's ability to meet its short-term obligations and manage its cash flow effectively.

The current ratio has been relatively stable over the past eight quarters, ranging from 1.79 to 1.89, which suggests the company has sufficient current assets to cover its current liabilities. However, it is important to note that a current ratio above 1 does not necessarily mean the company is in a strong liquidity position as it may have excess current assets that are not efficiently utilized.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. This ratio has also shown stability between 1.36 and 1.59 over the same period, indicating the company's ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has varied more significantly, ranging from 0.89 to 1.08. This metric indicates the company's ability to cover its current liabilities with its most liquid assets.

Overall, National Healthcare Corp. has maintained solid liquidity over the past quarters, with current and quick ratios consistently above 1.5. However, close monitoring of the cash ratio is advisable to ensure the company has sufficient cash reserves to cover its immediate financial obligations.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 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 20.82 20.36 22.41 21.90

The cash conversion cycle for National Healthcare Corp. over the past eight quarters has shown some variability but has generally remained within a relatively narrow range. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales, has averaged around 34 days over this period.

The trend indicates that National Healthcare Corp. has been relatively efficient in managing its working capital and converting its operating activities into cash. A lower cash conversion cycle suggests that the company is able to quickly turn its investments into cash, which can be a positive indicator of its liquidity and operational efficiency.

While there have been slight fluctuations in the cash conversion cycle from quarter to quarter, the overall stability suggests that National Healthcare Corp. has been effectively managing its inventory, accounts receivable, and accounts payable to optimize cash flow. This indicates a sound financial management strategy and operational efficiency within the company.

Overall, the consistent performance of National Healthcare Corp. in maintaining a relatively stable cash conversion cycle reflects positively on its ability to efficiently manage its working capital and generate cash from its core business activities.