Adapthealth Corp (AHCO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,071,300 | 2,862,560 | 2,350,980 | 1,023,920 | 488,218 |
| Receivables | US$ in thousands | 457,310 | 397,746 | 383,696 | 191,265 | 87,231 |
| Receivables turnover | 6.72 | 7.20 | 6.13 | 5.35 | 5.60 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,071,300K ÷ $457,310K
= 6.72
The receivables turnover of AdaptHealth Corp has shown varying trends over the past five years. In 2023 and 2022, the company was able to collect its accounts receivable approximately 8.23 and 8.27 times, respectively, within the year, indicating a relatively efficient collection process. This suggests that the company is adept at managing its outstanding receivables and converting them into cash.
In 2021, the receivables turnover ratio decreased to 6.82, which may indicate a slightly slower collection of receivables compared to the previous years. However, it is still within a reasonable range.
The lowest receivables turnover ratio in the past five years was observed in 2020 at 6.18, suggesting a potential delay in collecting payments from customers. This could be a concern as it may indicate liquidity issues or difficulties in collecting receivables promptly.
In 2019, the receivables turnover ratio improved to 6.74, indicating a more efficient collection process compared to 2020 but slightly lower than the ratios in 2022 and 2023.
Overall, while the company has demonstrated relatively strong receivables turnover ratios in recent years, the slight fluctuations observed highlight the importance of monitoring and managing the collection of accounts receivable effectively to maintain healthy cash flows and liquidity.
Peer comparison
Dec 31, 2023