Privia Health Group Inc (PRVA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 389,511 | 347,992 | 320,577 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 290,768 | 189,604 | 117,402 |
| Total current liabilities | US$ in thousands | 386,952 | 264,274 | 190,461 |
| Quick ratio | 1.76 | 2.03 | 2.30 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($389,511K
+ $—K
+ $290,768K)
÷ $386,952K
= 1.76
The quick ratio of Privia Health Group Inc has exhibited a decreasing trend over the past three years. In 2021, the quick ratio stood at 2.35, indicating a strong ability to meet short-term obligations with liquid assets. However, the ratio decreased to 2.09 in 2022 and further to 1.81 in 2023, signaling a potential decline in the company's liquidity position.
A quick ratio above 1.0 generally suggests that the company has an adequate level of liquid assets to cover its current liabilities. While Privia Health Group Inc's quick ratios for all three years are above 1.0, the decreasing trend may raise concerns about the company's ability to meet its short-term obligations in the future.
It is advisable for management to closely monitor and potentially improve the company's liquidity position to ensure financial stability and meet operational needs in the face of unforeseen challenges.
Peer comparison
Dec 31, 2023