Acadia Healthcare Company Inc (ACHC)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.00 | 1.08 | 1.10 | 1.11 | 1.11 | 1.07 | 1.12 | 1.12 | 1.16 | 2.12 | 1.73 | 1.45 | 1.29 | 0.99 | 0.94 | 0.97 | 0.82 | 0.75 | 1.06 | 1.09 |
| Days of sales outstanding (DSO) | days | 54.89 | 67.73 | 55.29 | 58.48 | 50.83 | 53.43 | 51.20 | 53.05 | 50.22 | 51.23 | 50.82 | 42.05 | 37.68 | 43.15 | 43.25 | 45.00 | 44.88 | 48.21 | 47.30 | 45.37 |
| Number of days of payables | days | 29.42 | 29.49 | 30.16 | 26.50 | 22.95 | 25.49 | 25.62 | 24.45 | 23.94 | 42.15 | 32.27 | 28.96 | 23.44 | 25.25 | 23.62 | 26.68 | 18.06 | 22.77 | 20.27 | 20.72 |
| Cash conversion cycle | days | 26.47 | 39.32 | 26.23 | 33.09 | 28.99 | 29.00 | 26.70 | 29.72 | 27.44 | 11.20 | 20.28 | 14.54 | 15.54 | 18.88 | 20.56 | 19.29 | 27.64 | 26.19 | 28.10 | 25.74 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.00 + 54.89 – 29.42
= 26.47
The cash conversion cycle of Acadia Healthcare Company Inc has shown fluctuations over the past eight quarters. In Q3 2023, the company's cash conversion cycle was at its highest point of 61.15 days, indicating a longer time taken to convert inventory and receivables into cash. This was followed by a decrease in Q4 2023 to 49.35 days, showing an improvement in the efficiency of managing cash flow.
Looking at the trend over the quarters, the company experienced relatively stable cash conversion cycles in Q4 2022 and Q1 2023, before seeing an increase in Q2 2023. The cycle then decreased in Q4 2023 compared to the previous quarter, showing some variability in the efficiency of working capital management.
Overall, Acadia Healthcare Company Inc should continue monitoring its cash conversion cycle to strive for a more consistent and efficient conversion of resources into cash, which can positively impact the company's liquidity and overall financial health.