Privia Health Group Inc (PRVA)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.81 | 1.77 | 1.82 | 1.90 | 2.09 | 1.90 | 1.97 | 2.24 | 2.35 | 2.51 | 2.61 | 1.30 |
| Quick ratio | 1.76 | 1.73 | 1.78 | 1.85 | 2.03 | 1.85 | 1.91 | 2.19 | 2.30 | 2.46 | 2.55 | 1.26 |
| Cash ratio | 1.01 | 0.84 | 0.89 | 1.00 | 1.32 | 1.04 | 1.10 | 1.43 | 1.68 | 1.93 | 1.79 | 0.52 |
The liquidity ratios of Privia Health Group Inc over the past eight quarters indicate a stable liquidity position. The current ratio has remained relatively consistent around the range of 1.77 to 2.09, reflecting the company's ability to cover its short-term obligations with its current assets. The slight fluctuations may be due to changes in current assets and liabilities over the quarters.
Similarly, the quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has also shown stability within the range of 1.77 to 2.09. This suggests that Privia Health Group Inc has a strong ability to meet its immediate financial obligations without relying on inventory or other less liquid assets.
The cash ratio, which indicates the extent to which cash and cash equivalents cover current liabilities, has exhibited more variability compared to the current and quick ratios. However, the company has consistently maintained a cash ratio above 1.0, indicating that it has sufficient cash on hand to cover its short-term liabilities without relying on other current assets.
Overall, Privia Health Group Inc's liquidity ratios show a sufficient level of liquidity to meet its short-term obligations. However, it is important for the company to continue monitoring and managing its liquidity position to ensure long-term financial stability and viability.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 61.70 | 72.30 | 69.77 | 54.04 | 34.90 | 68.94 | 62.87 | 51.30 | 40.52 |
The cash conversion cycle of Privia Health Group Inc has shown some fluctuation over the recent quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the company's cash conversion cycle decreased to 49.47 days from 67.00 days in Q3 2023, indicating an improvement in the efficiency of managing its working capital. However, it is still higher compared to the same quarter in the previous year.
During Q2 and Q3 2023, there was a slight increase in the cash conversion cycle, which suggests potential challenges in managing inventory and accounts receivable. This led to a longer period for the company to convert its resources into cash.
In Q1 2023 and Q4 2022, the company also experienced relatively shorter cash conversion cycles, reflecting improved efficiency in managing working capital compared to the previous quarters. This indicates effective management of inventory and accounts receivable, leading to quicker conversion into cash flows.
Overall, Privia Health Group Inc should continue monitoring its cash conversion cycle closely to ensure efficient management of working capital and optimize cash flows to support its operational needs and growth strategies.