Adapthealth Corp (AHCO)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,574,310 | 2,236,145 | 2,756,987 | 2,742,329 | 2,717,217 | 3,241,752 | 2,682,237 | 2,613,486 | 2,553,169 | 2,412,922 | 2,296,367 | 2,179,209 | 1,989,834 | 1,826,077 | 1,514,323 | 1,181,366 | 898,601 | 1,102,641 | 834,110 | 621,300 |
| Payables | US$ in thousands | 284,602 | 266,476 | 279,562 | 226,422 | 211,504 | 205,098 | 226,533 | 302,053 | 222,505 | 238,203 | 198,411 | 212,820 | 248,027 | 211,373 | 260,580 | 229,154 | 191,038 | 144,804 | 103,590 | 105,194 |
| Payables turnover | 9.05 | 8.39 | 9.86 | 12.11 | 12.85 | 15.81 | 11.84 | 8.65 | 11.47 | 10.13 | 11.57 | 10.24 | 8.02 | 8.64 | 5.81 | 5.16 | 4.70 | 7.61 | 8.05 | 5.91 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,574,310K ÷ $284,602K
= 9.05
The payables turnover ratio of Adapthealth Corp indicates the efficiency with which the company is managing its accounts payable. Looking at the data provided, we can observe fluctuations in the payables turnover ratio over time.
From March 31, 2020, to December 31, 2021, the payables turnover ratio ranged between 4.70 to 8.64. This suggests that the company was turning over its payables approximately 4.70 to 8.64 times during this period. A higher turnover ratio indicates that the company is efficiently managing its payables and paying its suppliers more frequently.
However, starting from March 31, 2022, the payables turnover ratio showed an upward trend, reaching its peak at 15.81 on September 30, 2023. This significant increase may indicate that the company is taking more time to pay its suppliers, potentially signaling a change in the company's payment policies or supplier relationships.
Subsequently, the payables turnover ratio decreased to 8.39 by September 30, 2024. This decline could imply that the company has started paying its suppliers more frequently again, potentially improving its relationships with suppliers or addressing liquidity concerns.
Overall, monitoring the payables turnover ratio of Adapthealth Corp can provide insights into the company's management of accounts payable, supplier relationships, and overall financial health.
Peer comparison
Dec 31, 2024