Adapthealth Corp (AHCO)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,226,960 | 3,195,253 | 3,163,650 | 3,118,561 | 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 |
| Total current assets | US$ in thousands | 755,788 | 683,791 | 686,428 | 655,981 | 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 |
| Total current liabilities | US$ in thousands | 566,987 | 553,025 | 596,024 | 492,692 | 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 |
| Working capital turnover | 17.09 | 24.43 | 34.99 | 19.10 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,226,960K ÷ ($755,788K – $566,987K)
= 17.09
Adapthealth Corp's working capital turnover ratio has exhibited fluctuations over the period under review. The ratio, which measures how efficiently the company is utilizing its working capital to generate sales, started at a high of 165.37 in March 2020, indicating effective management in converting working capital into revenue.
However, the ratio experienced a significant decline to 4.82 in September 2020, indicating a sharp decrease in the efficiency of working capital utilization. This may suggest operational inefficiencies or potential liquidity issues during that period.
Over the subsequent quarters, the working capital turnover ratio remained stagnant at very low levels, with values below 10, which could be a cause for concern as it indicates a prolonged period of suboptimal working capital management.
Starting from December 31, 2021, the ratio began to show signs of improvement, gradually increasing to 34.99 by June 30, 2024. This upward trend suggests that the company has been able to enhance its efficiency in converting working capital into sales, which is a positive development.
However, a decrease to 17.09 by December 31, 2024 might warrant further investigation to understand the factors contributing to the decline in working capital turnover. Overall, continual monitoring and analysis of the working capital turnover ratio will be essential for assessing Adapthealth Corp's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024