Adapthealth Corp (AHCO)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	23.91	27.87	23.35	19.21	19.99	19.25	22.37	21.87	16.17	18.28	18.58	15.65	15.29	23.72	34.12	34.58	33.29	20.80	21.83	21.71
Receivables turnover	6.72	7.21	7.32	7.52	7.20	5.57	5.34	4.87	4.36	4.59	4.13	3.50	3.60	4.92	4.97	4.10	5.60	—	—	—
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
Working capital turnover	27.42	21.89	26.77	23.67	22.17	12.87	11.88	11.08	9.83	5.22	—	—	—	4.82	103.42	165.37	17.84	—	—	—

The activity ratios of AdaptHealth Corp indicate the efficiency of the company in managing its assets and liabilities.

- Inventory turnover has shown a consistent improvement, indicating that the company is selling its inventory at a faster rate compared to previous quarters and years. This suggests effective inventory management.

- Receivables turnover has also been relatively stable, showing that the company is efficiently collecting payments from its customers within a reasonable timeframe.

- Payables turnover has fluctuated, but overall remains at a healthy level, indicating that the company is effectively managing its payments to suppliers.

- Working capital turnover has shown a general upward trend, demonstrating that AdaptHealth Corp is generating revenue efficiently relative to its level of working capital. This suggests effective utilization of its resources to drive business operations.

Overall, these activity ratios suggest that AdaptHealth Corp is managing its assets and liabilities efficiently, which is essential for sustaining and growing its business operations in the long term.

Average number of days

		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
Days of inventory on hand (DOH)	days	15.27	13.10	15.63	19.00	18.26	18.96	16.32	16.69	22.58	19.96	19.65	23.32	23.88	15.38	10.70	10.56	10.96	17.55	16.72	16.82
Days of sales outstanding (DSO)	days	54.35	50.61	49.83	48.51	50.72	65.54	68.39	74.87	83.68	79.52	88.41	104.25	101.31	74.11	73.49	89.01	65.22	—	—	—
Number of days of payables	days	28.41	23.09	30.83	42.18	31.81	36.03	31.54	35.65	45.50	42.25	62.81	70.80	77.60	47.93	45.33	61.80	65.63	0.04	0.04	0.02

AdaptHealth Corp's activity ratios can provide insight into how efficiently the company is managing its assets and liabilities. Let's analyze the key activity ratios based on the data provided:

1. Days of Inventory on Hand (DOH):
- DOH measures how many days on average it takes for the company to sell its inventory.
- AdaptHealth Corp’s DOH ranged from 15.25 days to 19.01 days in Q4 2022 to Q1 2023.
- A decreasing trend in DOH indicates better inventory management efficiency, as the company is selling its inventory quicker.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect payment after making a sale.
- AdaptHealth Corp's DSO fluctuated between 42.85 days to 46.50 days from Q1 2022 to Q4 2023.
- A lower DSO is generally preferred as it signifies that the company is collecting revenue more quickly.

3. Number of Days of Payables:
- This ratio shows the average number of days it takes for the company to pay its suppliers.
- AdaptHealth Corp's days of payables ranged from 27.51 days to 42.22 days from Q1 2022 to Q1 2023.
- An increasing trend in days of payables may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.

Overall, analyzing AdaptHealth Corp's activity ratios reveals that the company has shown improvements in inventory management efficiency (DOH) and collection of receivables (DSO) over the quarters. However, the trend in payables (Days of Payables) is slightly erratic, with an increasing trend observed in Q1 2023, which may warrant further investigation into the company's supplier payment practices.

Long-term

	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
Fixed asset turnover	6.20	6.11	5.85	5.75	5.88	4.49	4.43	4.47	4.20	4.91	4.28	3.22	6.24	8.03	8.12	6.42	7.68	9.57	9.62	8.96
Total asset turnover	0.68	0.63	0.57	0.55	0.55	0.41	0.39	0.37	0.32	0.32	0.28	0.21	0.38	0.52	0.91	0.84	0.89	2.49	2.40	2.24

The long-term activity ratios of AdaptHealth Corp provide insight into how efficiently the company is utilizing its fixed assets and total assets to generate revenue.

Fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. The trend in AdaptHealth's fixed asset turnover ratio shows consistency and efficiency in utilizing its fixed assets to generate sales, with ratios consistently above 6. This indicates that the company is effectively using its fixed assets to generate revenue across multiple quarters.

Total asset turnover ratio reflects the company's ability to generate sales revenue from its total assets. The increasing trend in AdaptHealth's total asset turnover ratio from Q1 2022 to Q4 2023 indicates an improvement in the company's efficiency in generating revenue from its total assets. The ratios have been increasing steadily, indicating that the company is becoming more efficient in utilizing all its assets to generate revenue.

Overall, these long-term activity ratios suggest that AdaptHealth Corp is efficiently utilizing its assets to generate revenue, both fixed and total assets, which is a positive sign for the company's operational efficiency and potentially its profitability.