Select Medical Holdings (SEM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 59,694 | 84,006 | 97,906 | 74,310 | 577,061 |
| Short-term investments | US$ in thousands | 0 | 58,962 | 74,857 | 0 | — |
| Total current liabilities | US$ in thousands | 977,651 | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 |
| Cash ratio | 0.06 | 0.11 | 0.15 | 0.06 | 0.40 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($59,694K
+ $0K)
÷ $977,651K
= 0.06
The cash ratio of Select Medical Holdings has shown fluctuations over the years, starting at 0.40 on December 31, 2020, before decreasing to 0.06 on December 31, 2021. This indicates a significant decrease in the company's ability to cover its short-term liabilities with its cash reserves in the following year. However, there was a slight improvement in the cash ratio to 0.15 on December 31, 2022, which suggests a better liquidity position compared to the previous year.
Subsequently, the cash ratio decreased to 0.11 on December 31, 2023, indicating a slight decline in the company's ability to cover its short-term liabilities with available cash. Finally, as of December 31, 2024, the cash ratio remained at 0.06, the same level as in 2021, implying that the company's liquidity position did not show much improvement over the previous year.
Overall, the trend in Select Medical Holdings' cash ratio highlights fluctuations in its liquidity position, with a notable decrease in 2021 followed by some improvement in the subsequent years, albeit remaining relatively low by the end of the period analyzed. This indicates that the company may need to closely monitor its cash management strategies to ensure it can effectively meet its short-term financial obligations.
Peer comparison
Dec 31, 2024