Option Care Health Inc (OPCH)

Cash 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 and cash equivalents	US$ in thousands	343,849	386,489	441,166	297,776	294,186	255,468	204,046	145,600	119,423	200,856	157,526	109,362	99,265	140,047	118,099	77,244	67,056	52,789	14,390	5,703
Short-term investments	US$ in thousands	—	8,927	8,740	9,939	—	8,544	4,853	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	618,309	624,084	668,467	618,566	565,351	586,800	555,308	508,139	459,695	485,664	459,516	420,164	434,023	433,173	394,611	379,023	330,004	319,668	116,165	115,588
Cash ratio		0.56	0.63	0.67	0.50	0.52	0.45	0.38	0.29	0.26	0.41	0.34	0.26	0.23	0.32	0.30	0.20	0.20	0.17	0.12	0.05

December 31, 2023 calculation

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

The cash ratio of Option Care Health Inc. has shown a fluctuating trend over the past eight quarters. The ratio has ranged from a low of 0.44 in Q1 2022 to a high of 0.81 in Q2 2023. This indicates that the company had varying levels of cash and cash equivalents compared to its current liabilities during this period.

Overall, the cash ratio has generally been above 0.5, suggesting that Option Care Health Inc. has typically had sufficient cash on hand to cover its short-term liabilities. The upward trend in the cash ratio from Q1 2023 to Q2 2023 indicates an improvement in the company's liquidity position during that period.

However, the ratio dipped in Q4 2023 to 0.72, which may indicate a slight decrease in the company's ability to cover its current liabilities with its available cash. It would be important for Option Care Health Inc. to monitor and potentially enhance its liquidity management to ensure it can meet its short-term obligations effectively.

In conclusion, while the cash ratio of Option Care Health Inc. has fluctuated over the past eight quarters, it generally suggests that the company has maintained a reasonable level of liquidity to meet its short-term financial commitments.