Adapthealth Corp (AHCO)

Receivables 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
Revenue (ttm)	US$ in thousands	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	488,217	638,679	615,140	572,856
Receivables	US$ in thousands	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	87,231	—	—	—
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	—	—	—

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,071,305K ÷ $457,310K
= 6.72

The receivables turnover ratio for AdaptHealth Corp has been relatively stable over the past eight quarters, ranging from 7.24 to 8.52 times. This indicates that, on average, the company collects its accounts receivable approximately 7.24 to 8.52 times per year.

The consistent and relatively high values of the receivables turnover ratio suggest that AdaptHealth Corp has been efficiently managing its accounts receivable, promptly converting credit sales into cash. A higher turnover ratio typically signifies quicker collection of outstanding receivables, which may indicate effective credit policies, strong customer relationships, or efficient collection procedures.

Overall, the trend in the receivables turnover ratio for AdaptHealth Corp indicates solid management of its accounts receivable and suggests a healthy cash flow position resulting from effective credit management practices.