Privia Health Group Inc (PRVA)

Based on the provided data, let's analyze the liquidity ratios of Privia Health Group Inc:

1. Current Ratio: The current ratio shows the company's ability to cover its short-term liabilities with its short-term assets. Privia Health Group Inc's current ratio has been fluctuating over the last few years, ranging from a low of 1.29 at the end of 2020 to a high of 2.61 in June 2021. The current ratio generally improved through 2021 and 2022 but experienced a slight decline in the latter half of 2023 and 2024. Despite these fluctuations, the company maintained a current ratio above 1, indicating that it has, on average, more current assets than current liabilities to meet its short-term obligations.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Privia Health Group Inc's quick ratio also showed variations over the period, with a low of 0.52 in March 2021 and a high of 1.93 in September 2021. The quick ratio generally followed a similar trend to the current ratio, showing an improvement from 2021 to 2022 and declining slightly in the latter half of 2023 and 2024. Despite the fluctuations, the company maintained a quick ratio above 1 for most of the periods, indicating a relatively strong ability to meet its short-term obligations without relying on selling inventory.

3. Cash Ratio: The cash ratio is the most stringent liquidity ratio, considering only cash and cash equivalents to cover short-term liabilities. In this case, Privia Health Group Inc's cash ratio mirrored the trends seen in the quick ratio, reflecting the variations in the company's ability to cover short-term obligations with cash holdings alone. The company's cash ratio ranged from 0.52 at the end of 2020 to 1.93 in September 2021. Similar to the other ratios, the cash ratio improved from 2021 to 2022 before experiencing slight declines in the latter half of 2023 and 2024. Overall, the company maintained a cash ratio above 1 for most periods, indicating a solid ability to meet short-term liabilities with cash reserves.

In conclusion, based on the current, quick, and cash ratios, Privia Health Group Inc generally maintained a satisfactory liquidity position over the analyzed period, with the ability to cover short-term obligations. However, it is important to monitor these ratios continuously as liquidity is crucial for the company's ongoing operational and financial stability.

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Additional liquidity measure

Based on the provided data, the cash conversion cycle of Privia Health Group Inc has consistently been 0.00 days from December 31, 2020, to December 31, 2024. A cash conversion cycle of 0.00 days suggests that Privia Health Group Inc efficiently manages its working capital and effectively converts its cash invested in operations back into cash, indicating a streamlined process of selling inventory, collecting receivables, and paying suppliers. This efficiency in managing the cash conversion cycle demonstrates the company's ability to maintain a balance between its payables, receivables, and inventory turnover, ensuring smooth cash flow operations throughout the stated period.