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.
Peer comparison
Dec 31, 2023