Astrana Health Inc (ASTH)
Cash conversion cycle
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 0.46 | 3.19 | 0.41 | 0.34 | 47.04 | 40.21 | 75.15 | 66.66 | 63.21 | 44.25 | 39.77 | 48.72 | 40.50 | 28.42 | 32.79 | 47.76 | 63.10 | 64.55 | 59.60 | 73.32 |
| Number of days of payables | days | — | — | — | — | — | — | 10.10 | 4.98 | 4.95 | 5.43 | 13.33 | 6.86 | 5.91 | 5.90 | 5.75 | 6.23 | 4.91 | 4.95 | 3.50 | 4.21 |
| Cash conversion cycle | days | 0.46 | 3.19 | 0.41 | 0.48 | 47.04 | 40.21 | 65.05 | 61.68 | 58.26 | 38.82 | 26.44 | 41.85 | 34.59 | 22.51 | 27.04 | 41.53 | 58.19 | 59.60 | 56.10 | 69.12 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 0.46 – —
= 0.46
The cash conversion cycle of Astrana Health Inc has varied over the past few quarters, indicating fluctuations in the efficiency of its working capital management. A lower cash conversion cycle is generally favorable as it signifies that the company is able to convert its investments in inventory and receivables into cash quickly.
Looking at the trend, the company's cash conversion cycle was relatively stable and efficient in the first half of 2022, with durations ranging from 22.51 days to 38.82 days. However, the cycle increased significantly in the third quarter of 2022, peaking at 65.05 days, which could indicate potential issues with inventory management or slower collection of receivables during that period.
Subsequently, Astrana Health Inc managed to reduce the cash conversion cycle in the following quarters of 2022 and into 2023, with durations generally below 10 days, signaling improved working capital efficiency. However, in the first quarter of 2023, there was a significant spike to 47.04 days, which may necessitate a closer examination of working capital components to identify the underlying reasons for this increase.
Overall, while the company exhibited periods of effective working capital management, there were instances of inefficiencies that need to be monitored and addressed to maintain a healthy and sustainable cash conversion cycle. Further analysis of inventory turnover, accounts receivable collection effectiveness, and payment terms with suppliers could provide insights into how Astrana Health Inc can optimize its cash conversion cycle moving forward.
Peer comparison
Mar 31, 2024