Express Scripts Holding Co. (NASDAQ:ESRX)

Current Ratio

The current ratio exhibited a fluctuating trend over the five-year period. It started at 0.64 in 2013, decreased slightly to 0.62 in 2014, then improved to 0.7 in 2015 and reached its peak at 0.75 in 2016. However, it declined again to 0.67 in 2017. Overall, the ratio remained below 1.0 throughout, indicating that current liabilities consistently exceeded current assets, which may suggest potential liquidity concerns.

Quick Ratio

The quick ratio followed a generally upward trajectory until 2016, increasing from 0.45 in 2013 to 0.62 in 2016, reflecting a gradual enhancement in the company's ability to meet short-term liabilities without relying on inventory. Nevertheless, the ratio decreased to 0.52 in 2017, indicating some deterioration in quick asset coverage. Despite the improvement phase, values remained significantly less than 1.0.

Cash Ratio

The cash ratio demonstrated volatility across the years. It fell from 0.15 in 2013 to 0.11 in 2014, then rose notably to 0.19 in both 2015 and 2016 before dropping again to 0.13 in 2017. These levels show that the proportion of cash and cash equivalents relative to current liabilities was consistently low, implying limited immediate liquidity solely from cash holdings.

The data reveals trends in the company's liquidity position over a five-year period.

Current Assets

The current assets increased steadily from 8,491,400 thousand US dollars in 2013 to a peak of 12,363,400 thousand US dollars in 2016. In 2017, there was a slight decline to 11,957,100 thousand US dollars. Overall, this indicates growth in liquid or short-term resources available for meeting obligations during most of the observed period.

Current Liabilities

Current liabilities showed a rising trend as well, growing from 13,235,300 thousand US dollars in 2013 to 17,846,400 thousand US dollars in 2017. The liabilities slightly fluctuated between 2015 and 2016 but maintained an overall increase, reflecting a growing obligation or short-term debt load.

Current Ratio

The current ratio, a key measure of short-term liquidity, started below 1 at 0.64 in 2013 and dipped marginally to 0.62 in 2014. It improved to 0.7 in 2015 and further to 0.75 in 2016, suggesting a better ability to cover current liabilities with current assets. However, in 2017, the ratio declined to 0.67, indicating a reduction in liquidity compared to the prior year but still above the initial 2014 value.

In summary, while both current assets and current liabilities increased over the period, current liabilities grew at a faster pace, particularly in the last year, which negatively impacted the current ratio in 2017 after previous improvements. This pattern suggests that despite growth in assets, the company's liquidity position remains relatively constrained and requires continued monitoring to ensure adequate short-term financial health.

Total quick assets

The total quick assets showed a consistent increase from 2013 through 2016, rising from 6,014,300 thousand US dollars in 2013 to a peak of 10,139,300 thousand US dollars in 2016. However, in 2017, there was a decline to 9,365,900 thousand US dollars, indicating a slight reduction in highly liquid assets at the end of the period.

Current liabilities

Current liabilities increased overall during the period under review, starting at 13,235,300 thousand US dollars in 2013 and rising to 17,846,400 thousand US dollars by 2017. There was a minor dip in 2016 to 16,428,100 thousand US dollars, but the general trend over the five years was upward, suggesting growing short-term obligations.

Quick ratio

The quick ratio showed improvement from 0.45 in 2013 to a peak of 0.62 in 2016, reflecting an enhanced ability to cover current liabilities with quick assets during these years. In 2017, the ratio declined to 0.52, indicating a decrease in liquidity relative to current liabilities, although it remained higher than the initial levels observed in 2013 and 2014.

Total Cash Assets

The total cash assets showed a fluctuating trend over the analyzed period. Starting at approximately 1.99 billion USD at the end of 2013, there was a decline in 2014 to about 1.83 billion USD. This was followed by a significant increase in 2015, peaking at roughly 3.19 billion USD. Subsequently, cash assets slightly decreased in 2016 to around 3.08 billion USD and then experienced a notable drop in 2017 to approximately 2.31 billion USD. This pattern indicates a variable liquidity position with considerable changes year over year.

Current Liabilities

Current liabilities displayed a steady upward trend during the five-year span. Beginning at about 13.24 billion USD in 2013, liabilities increased substantially in 2014 to around 17.02 billion USD. This level was relatively maintained with a minor increment in 2015 to approximately 17.16 billion USD. The following year, 2016, showed a decrease to roughly 16.43 billion USD, but liabilities rose again in 2017 to an estimated 17.85 billion USD, the highest point in the period assessed. This increase could suggest growing short-term obligations or operational financing requirements.

Cash Ratio

The cash ratio indicates liquidity by comparing cash assets to current liabilities. Initially, the ratio was 0.15 at the end of 2013, declining to 0.11 in 2014, which suggests reduced immediate liquidity relative to obligations. There was a recovery and improvement in 2015 and 2016, with the ratio increasing to 0.19 both years, reflecting better cash coverage against current liabilities. However, in 2017, this ratio declined to 0.13, signaling diminished liquidity relative to the company’s short-term debts. Overall, the cash ratio remained consistently below 0.20, highlighting a limited buffer in cash resources when facing current liabilities.