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.
Peer comparison
Dec 31, 2023