Adapthealth Corp (AHCO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,720,610 | 2,553,170 | 2,008,920 | 898,601 | 440,705 |
| Payables | US$ in thousands | 211,504 | 222,505 | 248,027 | 191,038 | 79,237 |
| Payables turnover | 12.86 | 11.47 | 8.10 | 4.70 | 5.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,720,610K ÷ $211,504K
= 12.86
AdaptHealth Corp's payables turnover has shown a positive trend over the last five years, steadily increasing from 5.56 in 2019 to 12.86 in 2023. This indicates that the company is managing its accounts payable more efficiently and effectively converting its payables into cash or purchases more frequently over the years. A higher payables turnover ratio suggests that the company is paying its suppliers more rapidly, potentially taking advantage of early payment discounts or negotiating favorable credit terms. This improvement in payables turnover reflects a better liquidity position and financial health for AdaptHealth Corp.
Peer comparison
Dec 31, 2023