Cross Country Healthcare Inc (CCRN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,009,910	2,788,490	1,669,790	833,527	815,040
Receivables	US$ in thousands	393,871	663,134	500,856	176,401	176,313
Receivables turnover		5.10	4.21	3.33	4.73	4.62

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,009,910K ÷ $393,871K
= 5.10

The receivables turnover ratio measures how efficiently a company collects cash from customers relative to its average accounts receivable balance during a period. Cross Country Healthcares, Inc. has shown an improving trend in receivables turnover over the past five years, indicating enhanced efficiency in collecting receivables.

The company's receivables turnover ratio increased from 4.71 in 2019 to 5.29 in 2023, suggesting that in 2023, Cross Country Healthcares collected cash from its customers approximately 5.29 times over the year. This indicates that the company has become more effective in managing its receivables and converting them into cash.

Comparing the 2023 ratio to earlier years, we see a relatively steady improvement in receivables turnover, with some fluctuations. The ratios for 2020 and 2023 exhibit stronger performance compared to 2021 and 2019. This overall positive trend suggests that Cross Country Healthcares has been successful in optimizing its credit and collection policies, leading to swifter cash inflows from customers in recent years.

In conclusion, the increasing trend in Cross Country Healthcares, Inc.'s receivables turnover ratio signifies the company's efforts to enhance its receivables management and cash collection efficiency over the analyzed period. This improvement reflects positively on the company's liquidity and ability to convert its accounts receivable into cash promptly, which is crucial for its financial health and operational sustainability.