Adapthealth Corp (AHCO)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,259,430 | 3,071,300 | 2,862,560 | 2,350,980 | 1,023,920 |
| Receivables | US$ in thousands | 449,619 | 457,310 | 397,746 | 383,696 | 191,265 |
| Receivables turnover | 7.25 | 6.72 | 7.20 | 6.13 | 5.35 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,259,430K ÷ $449,619K
= 7.25
The receivables turnover for Adapthealth Corp has shown a positive trend over the past five years. From 2020 to 2024, the receivables turnover ratio has increased steadily from 5.35 to 7.25. This indicates that the company has been able to collect its accounts receivable more efficiently each year.
A higher receivables turnover ratio suggests that the company is effectively managing its accounts receivable and converting them into cash quickly. This could be attributed to more efficient credit policies, effective collection efforts, or improved customer creditworthiness.
Overall, the increasing trend in the receivables turnover ratio for Adapthealth Corp reflects positively on the company's liquidity and ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2024