Select Medical Holdings (SEM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 84,006 | 97,906 | 74,310 | 577,061 | 335,882 |
| Short-term investments | US$ in thousands | 58,962 | 74,857 | — | — | — |
| Receivables | US$ in thousands | 940,335 | 941,312 | 889,303 | 896,763 | 762,677 |
| Total current liabilities | US$ in thousands | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 | 914,280 |
| Quick ratio | 0.87 | 0.96 | 0.76 | 1.02 | 1.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($84,006K
+ $58,962K
+ $940,335K)
÷ $1,248,460K
= 0.87
The quick ratio, also known as the acid-test ratio, reflects Select Medical Holdings Corporation's ability to meet its short-term obligations with its most liquid assets. The trend analysis of the quick ratio over the past five years shows some fluctuations:
- In 2019, the company had a quick ratio of 1.33, indicating that it had $1.33 in liquid assets available to cover each dollar of current liabilities.
- The ratio decreased to 1.11 in 2020, which still indicated a strong ability to meet short-term obligations.
- In 2021, the quick ratio dropped to 0.90, suggesting a potential liquidity concern as the company had only $0.90 in liquid assets to cover each dollar of current liabilities.
- However, the ratio improved in 2022 to 1.10, indicating a slight recovery in liquidity levels.
- By the end of 2023, the quick ratio stood at 1.01, which is slightly above 1, signaling that the company had enough liquid assets to meet its short-term liabilities.
Overall, while there have been fluctuations in Select Medical Holdings Corporation's quick ratio over the past five years, the recent improvement in 2023 suggests a better ability to cover short-term obligations with liquid assets. Nonetheless, continuous monitoring of liquidity is essential to ensure the company's financial health.
Peer comparison
Dec 31, 2023