Adapthealth Corp (AHCO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 18.45 | 22.67 | 19.99 | 16.32 | 15.29 |
| Receivables turnover | 7.25 | 6.72 | 7.20 | 6.13 | 5.35 |
| Payables turnover | 9.06 | 12.18 | 11.47 | 8.10 | 4.70 |
| Working capital turnover | 17.26 | 27.42 | 22.17 | 13.81 | — |
Adapthealth Corp's inventory turnover has shown a positive trend over the years, increasing from 15.29 in 2020 to 18.45 in 2024, indicating that the company is managing its inventory efficiently and selling its goods more frequently.
The receivables turnover ratio has also exhibited improvement, rising from 5.35 in 2020 to 7.25 in 2024. This suggests that Adapthealth Corp is collecting its receivables at a faster pace, reflecting effective credit management practices.
On the other hand, the payables turnover ratio has seen fluctuations but generally increased from 4.70 in 2020 to 9.06 in 2024. This indicates that the company is paying its suppliers more efficiently, which could be beneficial for managing its cash flow.
The working capital turnover ratio, which was not available for 2020, shows a consistent increasing trend from 13.81 in 2021 to 17.26 in 2024. This signifies that Adapthealth Corp is utilizing its working capital more effectively to generate revenue, highlighting its operational efficiency.
Overall, the activity ratios of Adapthealth Corp demonstrate improvements in inventory management, receivables collection, payables payment, and working capital utilization over the years, reflecting the company's focus on enhancing operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.78 | 16.10 | 18.26 | 22.37 | 23.88 |
| Days of sales outstanding (DSO) | days | 50.35 | 54.35 | 50.72 | 59.57 | 68.18 |
| Number of days of payables | days | 40.27 | 29.97 | 31.81 | 45.06 | 77.60 |
Adapthealth Corp's activity ratios reflect the efficiency of its operations in managing inventory, collecting receivables, and paying suppliers. The Days of Inventory on Hand (DOH) measure decreased from 23.88 days in December 2020 to 19.78 days by December 2024, indicating a trend towards more efficient inventory management.
The Days of Sales Outstanding (DSO) ratio improved from 68.18 days in December 2020 to 50.35 days by December 2024, suggesting a more effective collection of receivables. This reduction in the DSO indicates that Adapthealth Corp is collecting revenue from sales more quickly.
In terms of payables, the Number of Days of Payables measure decreased significantly from 77.60 days in December 2020 to 40.27 days by December 2024. This indicates that the company is taking longer to pay its suppliers, potentially improving its cash flow position.
Overall, the decreasing trend in DOH and DSO, along with the decreasing trend in the Number of Days of Payables, suggest that Adapthealth Corp has been able to improve its working capital management and operational efficiency over the analyzed period.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.87 | 6.20 | 5.88 | 5.90 | 9.27 |
| Total asset turnover | 0.73 | 0.68 | 0.55 | 0.45 | 0.56 |
Adapthealth Corp's fixed asset turnover has shown a declining trend from 9.27 in December 31, 2020, to 6.87 in December 31, 2024. This indicates that the company's ability to generate sales from its fixed assets has decreased over the years.
In contrast, the total asset turnover ratio for Adapthealth Corp has been fluctuating, with a low of 0.45 in December 31, 2021, and a high of 0.73 in December 31, 2024. This ratio measures how efficiently the company is utilizing all its assets to generate revenue.
Overall, a declining fixed asset turnover and a fluctuating total asset turnover suggest that Adapthealth Corp may be facing challenges in effectively utilizing both its fixed and total assets to generate sales. These ratios indicate the need for further analysis to identify the underlying factors contributing to the company's operational efficiency and asset utilization.