Adapthealth Corp (AHCO)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	440,704	296,065	295,261	293,625
Payables	US$ in thousands	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	79,237	29	30	16
Payables turnover		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	5.56	10,209.14	9,842.03	18,351.56

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,717,217K ÷ $211,504K
= 12.85

AdaptHealth Corp's payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 8.65 in Q1 2023 to a high of 13.27 in Q3 2023. The payables turnover ratio indicates the efficiency with which the company is managing its accounts payable. A higher ratio suggests that the company is paying its suppliers more quickly.

In general, AdaptHealth Corp's payables turnover ratio has been relatively high, indicating that the company is efficient in paying off its suppliers. However, the fluctuations in the ratio over the quarters suggest some variability in the company's payment practices.

Overall, a consistent or increasing trend in the payables turnover ratio could indicate improving liquidity management, stronger supplier relationships, and potentially better negotiating power with suppliers. Conversely, a decreasing trend may suggest potential cash flow issues or difficulties in managing working capital efficiently.

It is important for stakeholders to monitor this ratio over time to assess the company's ability to effectively manage its payables and maintain healthy supplier relationships.