National HealthCare Corporation (NHC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 109,048 | 100,288 | 96,577 | 90,598 | 97,230 |
| Total current liabilities | US$ in thousands | 214,476 | 197,887 | 263,201 | 281,228 | 194,763 |
| Quick ratio | 1.55 | 1.43 | 1.34 | 1.47 | 1.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($107,076K
+ $116,544K
+ $109,048K)
÷ $214,476K
= 1.55
The quick ratio of National Healthcare Corp. has shown some variability over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio improved to 1.59, showing an increase from the previous year's 1.48. This suggests that the company has a slightly stronger ability to cover its short-term liabilities with its quick assets in 2023.
Although the quick ratio fluctuated between 1.37 and 1.56 from 2019 to 2022, overall, the company has maintained a quick ratio above 1, indicating that it has sufficient liquid assets to meet its short-term obligations.
It is important for stakeholders to monitor the quick ratio closely to ensure that the company's liquidity position remains stable and that it can effectively manage its short-term financial obligations.
Peer comparison
Dec 31, 2023