Acadia Healthcare Company Inc (ACHC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 365.51 | 327.46 | 313.47 | 281.90 | 508.30 |
| Receivables turnover | 6.65 | 7.18 | 7.27 | 6.72 | 8.01 |
| Payables turnover | 12.41 | 15.91 | 15.22 | 15.57 | 22.95 |
| Working capital turnover | — | 21.57 | 24.54 | 1.61 | 37.14 |
Acadia Healthcare Company Inc's inventory turnover ratio has consistently been reported as 0.00 over the past five years, indicating that the company is not efficiently managing its inventory. This could be a cause for concern as it suggests potential issues with inventory management or slow-moving inventory.
On the other hand, the company's receivables turnover ratio has shown a slight fluctuation but has generally remained stable, ranging from 7.20 to 8.28 over the same period. This suggests that Acadia Healthcare is collecting its accounts receivable in a timely manner, which is a positive sign of efficient credit management and liquidity.
The payables turnover ratio for Acadia Healthcare has consistently been reported as 0.00 over the past five years, implying that the company is not effectively managing its accounts payable. This could indicate a lack of negotiation power with suppliers or inefficiencies in managing payment terms.
Acadia Healthcare's working capital turnover has shown significant fluctuations over the years, ranging from 1.72 to 39.52. This suggests varying levels of efficiency in generating revenue relative to the company's working capital. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales, while a lower ratio may indicate inefficiencies in utilizing available capital resources.
Overall, Acadia Healthcare's activity ratios reveal mixed performance in terms of managing inventory, receivables, payables, and working capital. It may be beneficial for the company to focus on improving inventory management and payables turnover to enhance operational efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.00 | 1.11 | 1.16 | 1.29 | 0.72 |
| Days of sales outstanding (DSO) | days | 54.89 | 50.83 | 50.22 | 54.31 | 45.55 |
| Number of days of payables | days | 29.42 | 22.95 | 23.98 | 23.44 | 15.90 |
Days of sales outstanding (DSO) is used to measure how long, on average, it takes Acadia Healthcare Company Inc to collect payments from its customers. The trend shows a slight increase from 44.07 days in 2019 to 49.35 days in 2023, indicating a longer collection period over the years. This may suggest potential issues with accounts receivable management or changes in customer payment behaviors.
Days of inventory on hand (DOH) is a measure of how many days it takes for Acadia Healthcare Company Inc to convert its inventory into sales. Unfortunately, the data for this ratio is missing for all the years provided, hindering a comprehensive analysis of the company's inventory management efficiency.
Number of days of payables is not provided in the data, making it impossible to assess how long Acadia Healthcare takes to pay its suppliers. However, the absence of this information limits the ability to fully evaluate the company's liquidity and supplier relationship management.
Overall, based on the available data for Days of Sales Outstanding, there appears to be room for improvement in managing receivables efficiently to enhance Acadia Healthcare Company Inc's cash flow and working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.26 | 1.30 | 1.25 | 1.21 | 1.95 |
| Total asset turnover | 0.53 | 0.51 | 0.46 | 0.30 | 0.42 |
The fixed asset turnover ratio for Acadia Healthcare Company Inc has been relatively stable over the past five years, ranging from 1.29 to 1.34. This indicates that the company is generating consistent revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio is generally favorable as it suggests efficient utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown some variability over the same period, with values ranging from 0.32 to 0.55. A lower total asset turnover ratio could imply that Acadia Healthcare Company Inc is not effectively using its total assets to generate revenue. However, the upward trend in this ratio over the years indicates improved efficiency in utilizing all assets to generate sales.
Overall, while the fixed asset turnover ratio reflects stable efficiency in generating sales from fixed assets, the increasing trend in the total asset turnover ratio suggests that Acadia Healthcare Company Inc is becoming more efficient in utilizing all assets to generate revenue. Monitoring these ratios going forward will be essential to ensure continued efficiency in asset utilization and revenue generation.