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Medco Health Solutions Inc. (MHS) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

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Medco Health Solutions Inc., liquidity ratios

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    Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007 Dec 30, 2006
Current ratio
Quick ratio
Cash ratio

Source: Based on data from Medco Health Solutions Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Medco Health Solutions Inc.'s current ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Medco Health Solutions Inc.'s quick ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Medco Health Solutions Inc.'s cash ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.

Current Ratio

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    Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007 Dec 30, 2006
  Selected Financial Data (USD $ in thousands)
Current assets
Current liabilities
  Current Ratio, Comparison to Industry
Medco Health Solutions Inc.1
  Industry, Health Care

Source: Based on data from Medco Health Solutions Inc. Annual Reports

2010 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Medco Health Solutions Inc.'s current ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.

Quick Ratio

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    Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007 Dec 30, 2006
  Selected Financial Data (USD $ in thousands)
Cash and cash equivalents
Short-term investments
Client accounts receivable, net
Manufacturer accounts receivable, net
Total quick assets
Current liabilities
  Quick Ratio, Comparison to Industry
Medco Health Solutions Inc.1
  Industry, Health Care

Source: Based on data from Medco Health Solutions Inc. Annual Reports

2010 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Medco Health Solutions Inc.'s quick ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.

Cash Ratio

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    Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007 Dec 30, 2006
  Selected Financial Data (USD $ in thousands)
Cash and cash equivalents
Short-term investments
Total cash assets
Current liabilities
  Cash Ratio, Comparison to Industry
Medco Health Solutions Inc.1
  Industry, Health Care

Source: Based on data from Medco Health Solutions Inc. Annual Reports

2010 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Medco Health Solutions Inc.'s cash ratio improved from 2008 to 2009 but then deteriorated significantly from 2009 to 2010.

February 8, 2012

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