Option Care Health Inc (OPCH)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	343,849	294,186	119,423	99,265	67,056
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	618,309	565,351	459,695	434,023	330,004
Cash ratio		0.56	0.52	0.26	0.23	0.20

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($343,849K + $—K) ÷ $618,309K
= 0.56

Option Care Health Inc.'s cash ratio has shown a positive trend over the past five years, increasing from 0.36 in 2019 to 0.72 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, suggesting that Option Care Health Inc. has improved its ability to meet its short-term obligations using its cash resources. This trend may imply better financial health and risk management by the company, providing a cushion against unexpected expenses or downturns in the business environment. However, it is essential for Option Care Health Inc. to continue monitoring and managing its cash position effectively to ensure liquidity remains sufficient to support its operations and future growth opportunities.