AMN Healthcare Services Inc (AMN)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,983,780	3,789,250	5,243,240	3,984,240	2,393,710
Total current assets	US$ in thousands	594,915	841,685	1,093,640	1,349,070	533,735
Total current liabilities	US$ in thousands	545,785	656,121	857,933	969,390	422,957
Working capital turnover		60.73	20.42	22.24	10.49	21.61

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,983,780K ÷ ($594,915K – $545,785K)
= 60.73

Working capital turnover is a key financial ratio that measures how efficiently a company is using its working capital to generate sales. A higher turnover ratio indicates better efficiency in utilizing working capital.

AMN Healthcare Services Inc's working capital turnover has fluctuated over the years. In 2020, the ratio was 21.61, which indicates that the company generated $21.61 in revenue for every $1 of working capital. This ratio decreased in 2021 to 10.49, suggesting a decrease in efficiency in the utilization of working capital.

However, in 2022, the working capital turnover ratio improved significantly to 22.24, indicating a higher efficiency in generating sales using working capital. The ratio remained relatively stable in 2023 at 20.42, showing consistent efficiency in utilizing working capital.

Notably, AMN Healthcare Services Inc's working capital turnover ratio saw a substantial increase to 60.73 in 2024, reflecting a significant improvement in efficiency in converting working capital into revenue. This substantial increase signifies a potential enhancement in the company's operational effectiveness and liquidity management.

Overall, fluctuations in AMN Healthcare Services Inc's working capital turnover ratio suggest varying levels of efficiency in utilizing working capital to generate revenue over the years, with a notable improvement in 2024.