Option Care Health Inc (OPCH)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	343,849	294,186	119,423	99,265	67,056
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	466,758	479,042	418,342	407,340	393,116
Total current liabilities	US$ in thousands	618,309	565,351	459,695	434,023	330,004
Quick ratio		1.31	1.37	1.17	1.17	1.39

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($343,849K + $—K + $466,758K) ÷ $618,309K
= 1.31

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company can cover its current liabilities with its quick assets, such as cash, marketable securities, and accounts receivable.

In the case of Option Care Health Inc., the quick ratio has fluctuated over the past five years. The company's quick ratio was 1.33 in 2023, 1.36 in 2022, 1.15 in both 2021 and 2020, and 1.34 in 2019.

A quick ratio above 1 signifies that Option Care Health Inc. has generally maintained a healthy level of liquidity over the period under consideration. However, the variability in the quick ratio over the years suggests potential fluctuations in the company's ability to meet its short-term obligations solely with its quick assets.

It is important for investors and stakeholders to closely monitor the quick ratio trend over time to assess the company's liquidity position and its ability to navigate short-term financial challenges effectively.