Adapthealth Corp (AHCO)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,226,960 | 3,195,253 | 3,163,650 | 3,118,561 | 3,071,305 | 2,996,410 | 2,952,637 | 2,893,848 | 2,862,561 | 2,123,026 | 2,015,922 | 1,899,702 | 1,673,661 | 1,677,361 | 1,322,838 | 961,338 | 689,118 | 816,705 | 675,717 | 560,602 |
| Receivables | US$ in thousands | 449,619 | 431,115 | 477,277 | 461,458 | 457,310 | 415,440 | 403,108 | 384,626 | 397,746 | 381,241 | 377,745 | 389,698 | 383,696 | 365,415 | 320,427 | 274,561 | 191,265 | 165,835 | 136,043 | 136,715 |
| Receivables turnover | 7.18 | 7.41 | 6.63 | 6.76 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,226,960K ÷ $449,619K
= 7.18
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Analyzing the receivables turnover data of Adapthealth Corp from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The ratio ranged from a low of 3.50 on March 31, 2021, to a high of 7.52 on March 31, 2023.
Overall, we notice an improving trend in receivables turnover from 2020 to 2024, with some fluctuations in between. The ratio steadily increased from 4.10 on March 31, 2020, to 7.18 on December 31, 2024. This trend suggests that Adapthealth Corp has been successful in managing its accounts receivable more efficiently over the years.
It is important to note that a high receivables turnover ratio indicates that Adapthealth Corp is collecting payments from its customers at a faster rate, which may signify effective credit management or prompt collection efforts. Conversely, a low ratio could indicate potential issues with collections procedures or an increase in delinquent accounts.
In conclusion, Adapthealth Corp's receivables turnover ratio has shown improvement over the years, reflecting an enhanced ability to efficiently collect payments from customers. This trend suggests positive management of accounts receivable, which is essential for maintaining financial health and liquidity.
Peer comparison
Dec 31, 2024