R1 RCM Inc (RCM)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 173,600 | 164,900 | 123,100 | 104,200 | 110,100 | 131,100 | 163,500 |
| Short-term investments | US$ in thousands | -29,500 | — | 11,100 | 8,300 | — | 3,700 | — |
| Total current liabilities | US$ in thousands | 346,200 | 337,700 | 100,400 | 91,700 | 349,700 | 346,000 | 365,000 |
| Cash ratio | 0.42 | 0.49 | 1.34 | 1.23 | 0.31 | 0.39 | 0.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($173,600K
+ $-29,500K)
÷ $346,200K
= 0.42
The cash ratio of R1 RCM Inc. has been fluctuating over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was 1.01, indicating that the company had $1.01 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a strong liquidity position.
The trend of the cash ratio over the past quarters shows some variability. It increased from Q1 2023 to Q2 2023, reaching 0.99, but then decreased in the following quarter. There was a significant improvement in Q4 2022 compared to the previous quarters.
Overall, the company seems to have maintained a relatively healthy cash ratio above 1 in recent quarters, which is generally considered favorable as it indicates the company's ability to meet its short-term obligations using its liquid assets. However, management may need to closely monitor the cash position to ensure it remains sufficient to cover upcoming obligations and unexpected expenses.
Peer comparison
Dec 31, 2023