Adapthealth Corp (AHCO)

Working capital 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
Total current assets	US$ in thousands	649,022	585,067	568,288	646,725	585,308	631,931	605,216	614,988	670,058	823,438	590,869	503,502	363,251	484,385	263,641	194,542	181,415	747	1,002	907
Total current liabilities	US$ in thousands	536,999	448,185	457,978	524,477	456,214	466,927	435,456	443,555	499,812	502,065	605,874	513,140	422,053	314,805	257,107	191,152	154,052	3,198	2,283	980
Working capital turnover		27.42	21.89	26.77	23.67	22.17	12.87	11.88	11.08	9.83	5.22	—	—	—	4.82	103.42	165.37	17.84	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,071,305K ÷ ($649,022K – $536,999K)
= 27.42

The working capital turnover for AdaptHealth Corp has shown a consistent upward trend over the past eight quarters. The ratio has steadily increased from 15.62 in Q1 2022 to 28.57 in Q4 2023, indicating an improvement in the efficiency of utilizing working capital to generate revenue.

A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operations and sales activities. This can be seen as a positive indicator of operational efficiency and liquidity management within the organization.

Overall, the increasing trend in AdaptHealth Corp's working capital turnover ratio reflects a stronger ability to efficiently convert working capital into sales revenue over the periods analyzed.