AMN Healthcare Services Inc (AMN)

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	3,735,110	4,049,756	4,337,454	4,774,860	5,201,610	5,439,780	5,182,737	4,613,541	3,947,321	3,227,672	2,894,162	2,643,736	2,355,387	2,311,008	2,331,708	2,263,912	2,202,535	2,144,278	2,106,704	2,129,324
Total current assets	US$ in thousands	841,685	831,120	807,236	1,071,060	1,093,640	1,206,170	1,190,220	1,478,770	1,349,070	899,531	790,103	830,357	533,735	513,703	518,639	600,594	560,499	506,932	489,868	488,887
Total current liabilities	US$ in thousands	656,121	707,126	673,715	803,601	857,933	891,246	957,379	1,147,580	969,390	641,186	582,563	598,994	422,957	386,168	384,536	373,060	378,105	343,909	316,824	333,270
Working capital turnover		20.13	32.66	32.49	17.85	22.07	17.27	22.26	13.93	10.40	12.49	13.95	11.43	21.26	18.12	17.39	9.95	12.08	13.15	12.17	13.68

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,735,110K ÷ ($841,685K – $656,121K)
= 20.13

AMN Healthcare Services Inc.'s working capital turnover has shown fluctuating trends over the past eight quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio generally indicates better efficiency.

In Q3 2023, the working capital turnover ratio peaked at 33.04, reflecting a significant increase in efficiency compared to the previous quarter. This could suggest that the company effectively managed its working capital to support its sales activities during this period.

However, in Q1 2023 and Q2 2023, the working capital turnover ratios were also relatively high at 18.01 and 32.82, respectively. This indicates that the company maintained a strong level of efficiency in utilizing its working capital to drive sales revenue during these quarters.

On the other hand, in Q1 2022 and Q3 2022, the working capital turnover ratios were lower at 14.04 and 17.40, respectively. This suggests a potential inefficiency in managing working capital during these periods, which may have impacted the company's ability to generate sales from its working capital.

Overall, AMN Healthcare Services Inc. has demonstrated varying levels of efficiency in converting working capital into sales revenue over the past eight quarters. It will be essential for the company to continuously monitor and improve its working capital management practices to drive sustainable growth and profitability in the future.