UnitedHealth Group Incorporated (UNH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 25,312,000 | 25,427,000 | 23,365,000 | 21,375,000 | 16,921,000 |
| Short-term investments | US$ in thousands | 3,801,000 | 4,201,000 | 4,546,000 | 2,532,000 | 2,860,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 103,769,000 | 99,054,000 | 89,237,000 | 78,292,000 | 72,420,000 |
| Quick ratio | 0.28 | 0.30 | 0.31 | 0.31 | 0.27 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($25,312,000K
+ $3,801,000K
+ $—K)
÷ $103,769,000K
= 0.28
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. The quick ratio of UnitedHealth Group Incorporated has shown consistency over the past five years, ranging from 0.27 to 0.31.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its liquid assets alone. UnitedHealth Group's quick ratio consistently below 1 suggests potential liquidity constraints in the short term.
While the quick ratio of UnitedHealth Group has remained stable within a narrow range, it is important for investors and stakeholders to monitor the trend over time to ensure the company maintains sufficient liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024