National HealthCare Corporation (NHC)
Quick ratio
| 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 | US$ in thousands | 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 | 50,334 | 59,261 | 29,746 | 38,194 |
| Short-term investments | US$ in thousands | 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 | 173,029 | 177,541 | 147,007 | 160,547 |
| Receivables | US$ in thousands | 109,048 | 102,603 | 101,260 | 103,134 | 100,288 | 99,003 | 100,415 | 101,748 | 96,577 | 99,918 | 98,693 | 103,096 | 90,598 | 85,848 | 87,248 | 102,196 | 97,230 | 95,826 | 98,879 | 102,036 |
| Total current liabilities | US$ in thousands | 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 | 194,763 | 181,088 | 171,687 | 169,962 |
| 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 |
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 been gradually improving over the past eight quarters, indicating a strengthening liquidity position. The ratio has consistently remained above 1, reflecting the company's ability to meet its short-term obligations using its most liquid assets such as cash, cash equivalents, and accounts receivable.
The increasing trend in the quick ratio suggests that the company has been managing its current liabilities more efficiently in relation to its liquid assets. This is a positive sign of financial health as it indicates that the company has a higher level of liquidity to cover its short-term liabilities without relying heavily on inventory or other less liquid assets.
Overall, the consistent improvement in the quick ratio of National Healthcare Corp. demonstrates a solid financial position in terms of short-term liquidity management. It suggests that the company is well-positioned to meet its immediate financial obligations and indicates a lower risk of financial distress in the near term.
Peer comparison
Dec 31, 2023