UnitedHealth Group Incorporated (UNH)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.79 0.80 0.80 0.81 0.77 0.82 0.77 0.78 0.79 0.77 0.77 0.74 0.74 0.82 0.84 0.75 0.69 0.70 0.67 0.73
Quick ratio 0.69 0.72 0.71 0.72 0.65 0.73 0.67 0.67 0.66 0.65 0.65 0.63 0.62 0.69 0.71 0.63 0.58 0.59 0.57 0.61
Cash ratio 0.30 0.39 0.41 0.40 0.31 0.42 0.32 0.32 0.31 0.30 0.29 0.28 0.27 0.31 0.37 0.31 0.23 0.25 0.28 0.27

Unitedhealth Group Inc's liquidity ratios have shown some fluctuations over the past eight quarters.

The current ratio, which indicates the company's ability to cover short-term obligations with its current assets, has been relatively stable, ranging from 0.77 to 0.81. However, the downward trend in the current ratio may suggest that the company could be facing challenges in managing its short-term liquidity effectively.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been somewhat volatile, ranging from 0.43 to 0.54. The decreasing trend in the quick ratio indicates that Unitedhealth Group Inc may be having difficulty meeting its immediate obligations without relying on inventory liquidation.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has been relatively stable around 0.13 to 0.17. While the cash ratio is higher than the quick ratio, indicating a stronger position in terms of immediate liquidity, the slight decrease over the quarters may indicate a potential need for better cash management.

Overall, Unitedhealth Group Inc's liquidity ratios suggest that the company may be facing some challenges in maintaining adequate liquidity to meet its short-term obligations. It may need to focus on improving its cash management practices and monitoring its liquidity position more closely to ensure financial stability.

See also:

UnitedHealth Group Incorporated Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 48.77 38.96 35.70 40.32 49.34 35.60 37.10 37.86 49.44 36.89 36.51 38.21 36.06 36.71 35.31 36.89 32.35 32.16 28.12 32.27

The cash conversion cycle of Unitedhealth Group Inc has shown some fluctuations over the past eight quarters.

In Q4 2023, the cash conversion cycle stands at 38.28 days, indicating that it took the company approximately 38.28 days to convert its investments in inventory and other resources into cash received from sales. This is a slight decrease from the previous quarter Q3 2023 (38.96 days), suggesting a more efficient management of working capital.

Looking further back, the cycle was relatively lower in Q4 2022 at 34.29 days, implying a quicker conversion of assets into cash during that period. However, in Q1 2023, the cycle increased to 40.32 days, indicating a potential delay in converting investments into cash.

Overall, the cash conversion cycle for Unitedhealth Group Inc has been fluctuating but has generally been maintained within a comparable range over the past 8 quarters, with occasional peaks and troughs. This suggests that the company may be managing its working capital effectively, with room for improvement in optimizing the conversion of assets into cash.