AMN Healthcare Services Inc (AMN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 34.47 | 57.78 | 41.02 |
| Receivables turnover | 5.94 | 7.60 | 5.00 | 6.08 | 6.20 |
| Payables turnover | 10.04 | 9.65 | 8.24 | 13.37 | 9.47 |
| Working capital turnover | 20.13 | 22.07 | 10.40 | 21.00 | 12.18 |
Based on the provided activity ratios for AMN Healthcare Services Inc., we can observe the following trends:
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company is collecting payments from its customers.
- There is a slight fluctuation in receivables turnover over the years, with a peak in 2022 at 5.50 and a low in 2021 at 3.87. In 2023, the ratio decreased to 5.08.
- A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is generally favorable.
2. Payables Turnover:
- The payables turnover ratio evaluates how efficiently a company is managing its accounts payable by comparing purchases to the supplier's credit terms.
- The trend for payables turnover is relatively stable over the years, with values ranging from 34.59 to 57.03. In 2023, the ratio increased to 46.92.
- A higher payables turnover ratio suggests that the company is settling its payables faster, which can indicate strong liquidity management.
3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is using its working capital to generate revenue.
- There is a fluctuation in the working capital turnover ratio over the years, with the highest value in 2022 at 22.24 and the lowest in 2019 at 12.18. In 2023, the ratio decreased to 20.42.
- A higher working capital turnover ratio indicates that the company is efficiently utilizing its resources to generate sales.
Overall, AMN Healthcare Services Inc. has demonstrated relatively stable performance in terms of receivables turnover, payables turnover, and working capital turnover ratios. These ratios provide insights into the company's operational efficiency and financial management strategies.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 10.59 | 6.32 | 8.90 |
| Days of sales outstanding (DSO) | days | 61.45 | 48.04 | 72.97 | 60.03 | 58.91 |
| Number of days of payables | days | 36.37 | 37.84 | 44.27 | 27.30 | 38.54 |
AMN Healthcare Services Inc.'s activity ratios demonstrate the efficiency of the company's operations in managing its inventory, collecting receivables, and paying its suppliers.
The Days of Sales Outstanding (DSO) ratio indicates that the company took an average of 71.91 days to collect its accounts receivable in 2023, showing an increase compared to the previous year. This suggests a slight delay in collecting payments from customers.
The Number of Days of Payables ratio reveals that AMN Healthcare Services Inc. took an average of 7.78 days to pay its suppliers in 2023, a decrease compared to the prior year. This indicates that the company is paying its bills more quickly, which could be a positive sign for supplier relationships.
The Days of Inventory on Hand (DOH) information is missing in the table, making it challenging to assess the efficiency of managing inventory levels over the years.
Overall, while there are fluctuations in the activity ratios, monitoring these metrics can provide insights into how effectively AMN Healthcare Services Inc. is managing its working capital and operating assets.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 19.52 | 34.84 | 31.05 | 20.03 | 21.20 |
| Total asset turnover | 1.28 | 1.80 | 1.26 | 0.99 | 1.15 |
The fixed asset turnover ratio for AMN Healthcare Services Inc. has fluctuated over the past five years, ranging from a low of 20.60 in 2020 to a high of 35.12 in 2022. This ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also varied for AMN Healthcare Services Inc. over the same period, with a low of 1.02 in 2020 and a high of 1.82 in 2022. This ratio assesses how efficiently the company is using its total assets to generate sales. A higher total asset turnover ratio suggests that the company is generating more sales revenue per dollar of assets.
Overall, it is important for AMN Healthcare Services Inc. to closely monitor these long-term activity ratios to ensure that they are effectively utilizing their assets to drive revenue growth and profitability. The fluctuations in these ratios over the years may reflect changes in the company's asset management strategies and operational efficiency.