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.
Peer comparison
Dec 31, 2023