Select Medical Holdings (SEM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 977,651 | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 |
| Quick ratio | 0.06 | 0.11 | 0.15 | 0.06 | 0.40 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($59,694K
+ $0K
+ $—K)
÷ $977,651K
= 0.06
The quick ratio of Select Medical Holdings has displayed fluctuations over the years based on the provided data. As of December 31, 2020, the quick ratio stood at 0.40, indicating the company had $0.40 of highly liquid assets available to cover each dollar of current liabilities. However, there was a significant decrease in the quick ratio to 0.06 by December 31, 2021, suggesting a potential liquidity strain as the ratio fell well below 1.
Subsequently, the quick ratio showed some improvement to 0.15 by December 31, 2022, although it remained relatively low compared to the ideal value of 1. This was followed by a slight decline to 0.11 by December 31, 2023, indicating a decrease in the company's ability to quickly cover its short-term obligations with liquid assets.
Lastly, by December 31, 2024, there was another notable decrease in the quick ratio to 0.06, reaffirming concerns about Select Medical Holdings' liquidity position. Overall, the trend in the quick ratio suggests a potential need for the company to enhance its liquidity management strategies to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024