Cross Country Healthcare Inc (CCRN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 226.85 | 198.96 | 152.12 | 134.55 |
| Receivables turnover | 5.10 | 4.21 | 3.33 | 4.73 | 4.62 |
| Payables turnover | 616.11 | 195.18 | 484.14 | — | — |
| Working capital turnover | 7.54 | 6.90 | 5.41 | 9.29 | 8.33 |
Based on the provided data for Cross Country Healthcares, Inc., we can analyze the activity ratios as follows:
1. Inventory Turnover: Unfortunately, the data for Inventory Turnover is not available for any of the years provided. It is a key ratio that measures the efficiency of the company in managing its inventory, which impacts its liquidity and profitability.
2. Receivables Turnover: The Receivables Turnover ratio has shown a fluctuating trend over the past five years. It indicates how many times, on average, the company collects its accounts receivable during a period. The higher the ratio, the more efficient the company is in collecting payments from its customers. The trend shows an improvement from 2019 to 2023, suggesting better management of receivables over time.
3. Payables Turnover: The data provided does not include the Payables Turnover ratio for the years 2021, 2020, and 2019. This ratio is crucial as it measures how quickly a company pays its suppliers. A higher ratio indicates better liquidity management.
4. Working Capital Turnover: The Working Capital Turnover ratio reflects how effectively the company utilizes its working capital to generate sales. Cross Country Healthcares, Inc. exhibits a fluctuating trend in this ratio over the years, but generally, it has shown improvement from 2019 to 2023. A higher ratio signifies efficient utilization of working capital to generate revenue.
In summary, the Receivables Turnover ratio has shown improvement over the years, indicating better management of accounts receivable. However, the unavailability of data for Inventory Turnover and Payables Turnover limits a comprehensive analysis of the company's overall activity ratios. The Working Capital Turnover ratio suggests that the company has been utilizing its working capital more effectively to generate sales, as demonstrated by the overall improving trend.
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 | — | 1.61 | 1.83 | 2.40 | 2.71 |
| Days of sales outstanding (DSO) | days | 71.53 | 86.80 | 109.48 | 77.25 | 78.96 |
| Number of days of payables | days | 0.59 | 1.87 | 0.75 | — | — |
Based on the activity ratios provided for Cross Country Healthcares, Inc., we can analyze several aspects of the company's operational efficiency.
1. Days of Inventory on Hand (DOH): Unfortunately, the data for the Days of Inventory on Hand is missing for all years, which limits our ability to assess how quickly the company is able to turn its inventory into sales.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding have shown some fluctuations over the years. In 2023, the DSO decreased to 68.93 days from 84.41 days in 2022. This suggests that the company has improved its ability to collect payments from customers more quickly, indicating a more efficient account receivables management.
3. Number of Days of Payables: Similar to Days of Inventory on Hand, the data for the Number of Days of Payables is missing for all years, preventing us from evaluating how long the company takes to pay its suppliers.
In summary, based on the available data, Cross Country Healthcares, Inc. has shown improvement in its collection of accounts receivable as indicated by a decrease in Days of Sales Outstanding from 2022 to 2023. However, without information on Days of Inventory on Hand and Number of Days of Payables, a comprehensive assessment of the company's overall efficiency in managing its inventory and payables is currently limited.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 73.52 | 141.82 | 105.46 | 67.49 | 68.88 |
| Total asset turnover | 2.96 | 2.94 | 2.28 | 2.33 | 2.13 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Cross Country Healthcares, Inc. experienced a significant decrease in fixed asset turnover from 142.74 in 2022 to 73.88 in 2023. This indicates that the company generated $73.88 in sales for every dollar invested in fixed assets in 2023, compared to $142.74 in 2022. Despite the decrease, the ratio remains relatively high, suggesting that the company efficiently utilizes its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio reflects how well a company uses its total assets to generate revenue. Cross Country Healthcares, Inc. had a fairly consistent total asset turnover ratio over the past five years, ranging from 2.15 in 2019 to 2.97 in 2023. This indicates that the company generated $2.97 in sales for every dollar of total assets in 2023. The consistent and relatively high total asset turnover ratio implies that the company effectively leverages its total assets to generate sales.
Overall, despite the fluctuation in fixed asset turnover, Cross Country Healthcares, Inc. has consistently maintained a strong total asset turnover ratio, indicating efficient asset utilization and revenue generation over the years.