Adapthealth Corp (AHCO)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	15.27	13.10	15.63	19.00	18.26	18.96	16.32	16.69	22.58	19.96	19.65	23.32	23.88	15.38	10.70	10.56	10.96	17.55	16.72	16.82
Days of sales outstanding (DSO)	days	54.35	50.61	49.83	48.51	50.72	65.54	68.39	74.87	83.68	79.52	88.41	104.25	101.31	74.11	73.49	89.01	65.22	—	—	—
Number of days of payables	days	28.41	23.09	30.83	42.18	31.81	36.03	31.54	35.65	45.50	42.25	62.81	70.80	77.60	47.93	45.33	61.80	65.63	0.04	0.04	0.02
Cash conversion cycle	days	41.20	40.61	34.64	25.32	37.17	48.48	53.18	55.92	60.76	57.23	45.25	56.77	47.59	41.57	38.85	37.77	10.55	17.51	16.68	16.80

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.27 + 54.35 – 28.41
= 41.20

The cash conversion cycle of AdaptHealth Corp has shown some fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was significantly shorter at 19.64 days, indicating that AdaptHealth Corp was able to convert its investments in raw materials or inventory into cash relatively quickly during that period. However, in Q2 2023, the cash conversion cycle increased to 28.18 days, showing a slower conversion rate.

Overall, AdaptHealth Corp's cash conversion cycle has been relatively stable in the range of 28 to 31 days over the past two years, with minor variations quarter to quarter. This suggests that the company's management of inventory, accounts receivable, and accounts payable has been relatively consistent. It is important for AdaptHealth Corp to continue monitoring and managing its cash conversion cycle effectively to ensure efficient use of working capital and optimize cash flow performance.