Select Medical Holdings (SEM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,019,780 | 1,257,650 | 1,271,310 | 1,139,440 | 1,594,000 |
| Total current liabilities | US$ in thousands | 977,651 | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 |
| Current ratio | 1.04 | 1.01 | 1.10 | 0.90 | 1.11 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,019,780K ÷ $977,651K
= 1.04
The current ratio of Select Medical Holdings has exhibited fluctuations over the past five years, ranging from 0.90 to 1.11. This ratio indicates the company's ability to meet its short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulties meeting its short-term liabilities with its current assets alone. On the other hand, a current ratio above 1 signifies that the company has sufficient current assets to cover its short-term obligations. Select Medical Holdings' current ratio has generally been above 1 over the period, with the lowest ratio recorded in December 31, 2021. Despite this, the company appears to have improved its liquidity position in subsequent years, reaching its highest current ratio of 1.10 in December 31, 2022. The current ratio then decreased to 1.01 in December 31, 2023, before slightly increasing to 1.04 in December 31, 2024. Overall, while there have been fluctuations in the current ratio, Select Medical Holdings has maintained a relatively stable liquidity position, ensuring its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024