Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Express Scripts Holding Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
- Current Ratio
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The current ratio exhibited moderate fluctuations throughout the observed periods, starting at 0.6 and experiencing slight increases and decreases. Notably, there was a general upward trend from the end of 2014 through early 2015, peaking at 0.7 in December 2015. Subsequently, the ratio decreased to a low of 0.55 in June 2016, before recovering and reaching a higher level of 0.77 by September 2018. This overall improvement suggests a gradual strengthening of the company's short-term liquidity position over time, despite some intermittent declines.
- Quick Ratio
-
The quick ratio followed a pattern somewhat similar to the current ratio, with initial values around 0.42-0.5. A gradual increase was observed towards the end of 2015, reaching 0.58, followed by a decline to about 0.45 in mid-2016. From that point onwards, the quick ratio showed a consistent recovery, climbing steadily to approximately 0.62 by the third quarter of 2018. This indicates an improving ability to meet short-term obligations without relying on inventory, which contributes positively to the company's liquidity assessment.
- Cash Ratio
-
The cash ratio displayed higher volatility compared to the other liquidity ratios, beginning with a low point at 0.14, fluctuating notably, including a sharp dip to 0.03 in September 2015 then a rapid increase to 0.19 in December 2015. After some variation, the ratio generally trended upwards from mid-2016 onward, achieving the highest levels recorded towards late 2017 and mid-2018, ending at 0.2 in September 2018. This suggests a gradual enhancement of cash and cash equivalents relative to current liabilities, indicating improved immediate liquidity resources.
Current Ratio
Express Scripts Holding Co., current ratio calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in liquidity and the balance between current assets and liabilities over the observed periods.
- Current Assets
- Current assets exhibited a fluctuating but generally increasing pattern throughout the periods. Starting at approximately 8.13 billion US dollars in the first quarter of 2014, current assets increased steadily with some variation, reaching a peak of around 14.35 billion US dollars by the third quarter of 2018. This upward trend indicates growing short-term resources available to the entity over time.
- Current Liabilities
- Current liabilities also showed an overall increase across the quarters but with notable volatility. Beginning at about 13.57 billion US dollars in the first quarter of 2014, liabilities rose sharply at times, such as the steep increase towards mid-2016. By the third quarter of 2018, current liabilities reached roughly 18.69 billion US dollars. The general increase in liabilities suggests expanding short-term obligations over the years.
- Current Ratio
- The current ratio, which measures liquidity by comparing current assets to current liabilities, remained below 1 throughout the period, indicating that current liabilities consistently exceeded current assets. The ratio started at 0.6 in the first quarter of 2014, showing relatively low short-term liquidity. It experienced slight improvements and fluctuations over the years, peaking at 0.77 in the third quarter of 2018. Notably, despite increases in both assets and liabilities, the current ratio maintained a relatively stable range between 0.55 and 0.77, reflecting persistent but moderate liquidity challenges.
In conclusion, while both current assets and liabilities have increased significantly over the reported periods, current liabilities have consistently outpaced current assets, maintaining a current ratio below 1. The gradual improvement in the current ratio suggests some enhancement in liquidity management; however, the company continues to face a short-term liquidity position where obligations exceed readily available assets.
Quick Ratio
Express Scripts Holding Co., quick ratio calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||
| Receivables, net | |||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrate a fluctuating but generally upward trend over the observed periods. Starting at approximately 5.76 billion US dollars in the first quarter of 2014, the value peaks near 9.91 billion by the end of 2015. Following some volatility from 2016 through 2017, the figure rises again, reaching its highest level in the final quarter of the data in September 2018 at approximately 11.53 billion US dollars. This indicates a strengthening position in liquid assets over time.
- Current Liabilities
- Current liabilities show a consistent increase with some short-term fluctuations. Beginning at about 13.57 billion US dollars in the first quarter of 2014, liabilities rise steadily, surpassing 18.6 billion by the third quarter of 2018. Despite minor decreases in certain quarters, the overall trend points to growing short-term obligations, which could exert pressure on liquidity if not matched by asset growth.
- Quick Ratio
- The quick ratio varies within a range of 0.42 to 0.62, reflecting changes in liquidity relative to current liabilities. Starting at 0.42 in the first quarter of 2014, the ratio experiences gradual improvement peaking at 0.62 in the fourth quarter of 2016. Although some fluctuations occur from 2017 onward, the ratio remains above 0.5 for most quarters, indicating a moderate but improving ability to cover current liabilities with quick assets. The rise towards the end of the period suggests enhanced short-term financial health.
- Overall Analysis
- Overall, the data reveals a company experiencing growth in liquid assets alongside an increase in current liabilities. The improvement in the quick ratio over time, despite the rising liabilities, suggests effective management of short-term liquidity. However, the quick ratio values below 1 throughout the periods indicate that quick assets are not fully sufficient to cover current liabilities immediately, highlighting a reliance on other sources of liquidity or working capital management strategies.
Cash Ratio
Express Scripts Holding Co., cash ratio calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit notable volatility over the observed periods. Initially, cash assets increase significantly from approximately 1.85 billion US dollars to 2.84 billion within the first two quarters of 2014, followed by a sharp decline to under 835 million by the third quarter of 2014. Subsequently, cash levels fluctuate, displaying a pattern of sharp increases and decreases without a consistent trend. In recent quarters, a general upward movement is apparent, reaching around 3.7 billion by the third quarter of 2018, which represents the highest level in the provided data. This pattern indicates variability in cash management or operational cash flows.
- Current Liabilities
- Current liabilities show a generally rising trend throughout the entire period. Starting from approximately 13.57 billion US dollars at the beginning of 2014, liabilities increase steadily with some minor fluctuations. Peaks are observed around the fourth quarter of 2014 and the fourth quarter of 2015, with values consistently exceeding 15 billion from mid-2014 onwards, eventually nearing 18.7 billion by the third quarter of 2018. This sustained increase suggests growing short-term obligations or potential expansion in operational scale requiring more current financing.
- Cash Ratio
- The cash ratio, which reflects liquidity by comparing cash assets to current liabilities, mirrors the volatility seen in cash assets against a backdrop of steadily growing liabilities. It starts at a low level of 0.14, peaks at 0.18 in mid-2014, then falls to a low of 0.03 by the third quarter of 2015. From this point, the ratio gradually improves, punctuated by periodic increases and decreases, reaching 0.20 by the third quarter of 2018—the highest ratio recorded in the dataset. While liquidity fluctuates considerably, the recent upward trend in the cash ratio may suggest improved ability to cover short-term liabilities with readily available cash.
- Overall Insights
- The data reveals a company managing significant increases in current liabilities over time while experiencing irregular but ultimately growing cash reserves. The increasing current liabilities alongside fluctuating cash assets drive a highly variable cash ratio, indicating periods of tight liquidity as well as times of relatively stronger cash coverage. The positive trend in cash ratio towards the end of the period may reflect efforts to bolster liquidity or optimize working capital management amid rising short-term debts.