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.
Peer comparison
Dec 31, 2023