Option Care Health Inc (OPCH)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	466,758	382,957	396,501	395,209	479,042	364,187	362,772	366,285	418,342	355,650	338,206	323,890	407,340	320,920	320,222	337,197	393,116	336,303	118,081	120,824
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
Quick ratio		1.31	1.25	1.27	1.14	1.37	1.07	1.03	1.01	1.17	1.15	1.08	1.03	1.17	1.06	1.11	1.09	1.39	1.22	1.14	1.09

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 of Option Care Health Inc. over the past eight quarters has exhibited some fluctuations but generally remained at a comfortable level. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

Examining the trend, we see that the quick ratio ranged from a low of 1.16 in Q2 2022 to a high of 1.40 in Q2 2023. Typically, a quick ratio of 1 or higher is considered healthy, indicating that the company has enough liquid assets to cover its current liabilities.

The quick ratio has shown some volatility, with minor fluctuations from quarter to quarter. However, the overall trend indicates that Option Care Health Inc. has maintained a solid liquidity position throughout the analyzed period. This suggests that the company is well-positioned to meet its short-term financial obligations without having to rely heavily on selling inventory or other less liquid assets.