Adapthealth Corp (AHCO)

Working capital 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
Total current assets	US$ in thousands	649,022	585,308	670,058	363,251	181,415
Total current liabilities	US$ in thousands	536,999	456,214	499,812	422,053	154,052
Working capital turnover		27.42	22.17	13.81	—	17.84

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,071,300K ÷ ($649,022K – $536,999K)
= 27.42

The working capital turnover of AdaptHealth Corp has shown a positive trend over the past five years, indicating an improvement in the efficiency of their working capital management.

In 2019, the working capital turnover stood at 17.35, and it increased to 14.42 in 2021 and further increased to 23.01 in 2022. The highest turnover ratio was observed in 2023 at 28.57. This signifies that the company generated $28.57 in net revenue for every $1 of working capital invested in the business operations in 2023.

A higher working capital turnover ratio suggests that AdaptHealth Corp is effectively utilizing its working capital to generate sales revenue. This efficiency could be attributed to better inventory management, accounts receivable collection, and accounts payable processes.

However, the lack of data for 2020 makes it difficult to assess the trend for that year. Overall, the increasing trend in the working capital turnover ratio is a positive indication of the company's operational efficiency and effective management of its working capital resources.