Acadia Healthcare Company Inc (ACHC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.64 | 1.12 | 1.22 | 1.31 | 1.35 | 1.60 | 1.24 | 1.24 | 1.24 | 1.23 | 1.27 | 1.27 | 1.31 | 1.20 | 1.16 | 1.05 | 1.02 | 0.99 | 0.93 | 0.96 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1.64 | 1.12 | 1.22 | 1.31 | 1.35 | 1.60 | 1.24 | 1.24 | 1.24 | 1.23 | 1.27 | 1.27 | 1.31 | 1.20 | 1.16 | 1.05 | 1.02 | 0.99 | 0.93 | 0.96 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.64 + — – —
= 1.64
The cash conversion cycle of Acadia Healthcare Company Inc has shown variations over the past few years. It measures the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle generally increased, indicating a lengthening timeframe for the company to convert its resources into cash. There were intermittent fluctuations in the cycle, with the shortest cycle observed in June 30, 2020 (0.93 days) and the longest cycle in December 31, 2024 (1.64 days).
The overall trend suggests that Acadia Healthcare Company Inc may be facing challenges in efficiently managing its working capital, potentially leading to increased cash flow constraints. It is essential for the company to analyze the underlying reasons behind these fluctuations and take necessary steps to improve its cash conversion cycle for better liquidity management in the future.
Peer comparison
Dec 31, 2024