Adapthealth Corp (AHCO)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,579,880 | 2,576,110 | 2,553,170 | 2,008,920 | 898,601 |
| Payables | US$ in thousands | 284,602 | 211,504 | 222,505 | 248,027 | 191,038 |
| Payables turnover | 9.06 | 12.18 | 11.47 | 8.10 | 4.70 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,579,880K ÷ $284,602K
= 9.06
Adapthealth Corp's payables turnover has shown a consistent upward trend over the years, indicating a more efficient management of its accounts payable. The payables turnover ratio has increased from 4.70 in December 2020 to 9.06 in December 2024. This suggests that the company is taking less time to pay its suppliers, which can be seen as a positive sign of the company's financial health and management efficiency. However, the ratio experienced a slight dip in 2022 compared to 2023, which could indicate a temporary delay in payments or a change in the company's payment terms. Overall, Adapthealth Corp's improving payables turnover ratio reflects a strengthened ability to manage its financial obligations effectively.
Peer comparison
Dec 31, 2024