US Physicalrapy Inc (USPH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 152,825 | 31,594 | 28,567 | 32,918 | 23,548 |
| Short-term investments | US$ in thousands | — | 2,858 | — | — | — |
| Receivables | US$ in thousands | 51,866 | 51,934 | 47,772 | 41,906 | 46,228 |
| Total current liabilities | US$ in thousands | 102,185 | 85,489 | 83,481 | 93,492 | 60,563 |
| Quick ratio | 2.00 | 1.01 | 0.91 | 0.80 | 1.15 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($152,825K
+ $—K
+ $51,866K)
÷ $102,185K
= 2.00
The quick ratio of U.S. Physical Therapy, Inc. has shown fluctuating trends over the past five years. The quick ratio was 1.41 in 2019, indicating that the company had $1.41 in liquid assets to cover each dollar of current liabilities. This ratio increased significantly to 1.14 in 2021 before jumping to 2.28 in 2023, suggesting a substantial improvement in the company's ability to meet its short-term obligations using its most liquid assets.
Although the quick ratio dipped to 0.94 in 2020, indicating potential liquidity concerns as the company had less than a dollar in liquid assets for each dollar of current liabilities, the subsequent recovery and significant improvement in subsequent years point to better liquidity management and financial health.
Overall, the upward trend in the quick ratio from 2019 to 2023 indicates that U.S. Physical Therapy, Inc. has enhanced its ability to meet short-term obligations using liquid assets, which is a positive indicator of financial stability and liquidity for the company.
Peer comparison
Dec 31, 2023