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.
Peer comparison
Dec 31, 2023