Molina Healthcare has a quick ratio of 1.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for Molina Healthcare's Quick Ratio or its related term are showing as below:
MOH'
s Quick Ratio Range Over the Past 10 Years
Min: 1.19 Med: 1.47 Max: 1.96
Current: 1.49
During the past 13 years, Molina Healthcare's highest Quick Ratio was 1.96. The lowest was 1.19. And the median was 1.47.
MOH's Quick Ratio is ranked better than 52.94% of 17
companies
in the Healthcare Plans industry
Industry Median: 1.24
vs MOH: 1.49
Molina Healthcare Quick Ratio Historical Data
The historical data trend for Molina Healthcare's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Molina Healthcare's Quick Ratio
For the Healthcare Plans subindustry, Molina Healthcare's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Molina Healthcare's Quick Ratio Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Molina Healthcare's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Molina Healthcare's Quick Ratio falls into.
Molina Healthcare Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Molina Healthcare's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Molina Healthcare (NYSE:MOH) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Molina Healthcare Quick Ratio Related Terms
Thank you for viewing the detailed overview of Molina Healthcare's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Molina Healthcare (Molina Healthcare) Business Description
Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). In addition to its Health Plans segment, Molina has a Medicaid,Medicare, and Marketplace segment that represent the government-funded or sponsored programs under their management information systems. Molina's Medicaid plans receive revenue on a per-member per-month basis from state government agencies, and its Medicare Advantage plans receive revenue from managed care plans that contract with the Centers for Medicaid and Medicare (CMS). Molina also provides plans through health insurance exchanges.
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