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.