Astrana Health Inc (ASTH)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 3.20 | 24,005.62 | 44.29 | 28.45 | 64.97 |
| Number of days of payables | days | — | — | 5.30 | 5.90 | 4.92 |
| Cash conversion cycle | days | 3.20 | 24,005.62 | 39.00 | 22.55 | 60.05 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 3.20 – —
= 3.20
The cash conversion cycle of Astrana Health Inc has shown significant fluctuations over the past five years.
In 2023, the company's cash conversion cycle improved significantly to 3.20 days, indicating that the company was able to convert its inventory into cash quickly and efficiently during the year. This may suggest improved inventory management and/or quicker collection of accounts receivable.
However, in 2022, the cash conversion cycle skyrocketed to 24,005.62 days, which is an exceptionally high number. This may indicate significant delays in collecting receivables or managing inventory during that period, which could have had a detrimental impact on the company's cash flow and liquidity.
In 2021 and 2020, the cash conversion cycle improved to 39.00 days and 22.55 days, respectively, suggesting better management of working capital and operating efficiency compared to the preceding years.
Lastly, in 2019, the cash conversion cycle was at its highest at 60.05 days, indicating a longer period for converting inventory and receivables into cash, which could signify inefficiencies in the company's operations.
Overall, the trend in the cash conversion cycle for Astrana Health Inc appears to be volatile, with significant improvements observed in some years and challenges in others. It is crucial for the company to sustain efficient working capital management practices to ensure optimal cash flow and financial stability in the long term.
Peer comparison
Dec 31, 2023