Select Medical Holdings (SEM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,257,650 | 1,271,310 | 1,139,440 | 1,594,000 | 1,212,990 |
| Total current liabilities | US$ in thousands | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 | 914,280 |
| Current ratio | 1.01 | 1.10 | 0.90 | 1.11 | 1.33 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,257,650K ÷ $1,248,460K
= 1.01
The current ratio of Select Medical Holdings Corporation has shown fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In 2023, the current ratio decreased to 1.01 from 1.10 in 2022, indicating a decrease in the company's ability to cover its short-term liabilities with its current assets. This may raise concerns about liquidity and the company's ability to fulfill its short-term obligations.
In 2021, the current ratio was at its lowest at 0.90, suggesting potential liquidity challenges and an increased risk of default on short-term liabilities. The ratio improved in 2022 and 2023 but remained relatively low compared to previous years.
On the other hand, the current ratio was relatively strong in 2019 at 1.33, indicating a healthy liquidity position and the ability to easily cover short-term obligations with current assets.
Overall, the fluctuation in Select Medical Holdings Corporation's current ratio over the years indicates varying levels of liquidity and ability to meet short-term obligations. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023