Cross Country Healthcare Inc (CCRN)

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	2,010,497	2,222,880	2,413,858	2,625,827	2,792,021	2,806,282	2,546,405	2,129,244	1,672,603	1,247,530	1,068,775	954,923	836,417	837,407	852,639	838,617	823,724	808,035	799,552	801,367
Total current assets	US$ in thousands	415,153	445,229	505,634	648,612	675,673	660,017	718,323	692,306	508,273	313,273	285,390	269,734	183,111	182,441	174,552	190,630	183,357	189,688	187,242	186,484
Total current liabilities	US$ in thousands	148,587	183,578	216,027	264,908	271,640	276,790	268,658	283,245	199,770	144,662	122,060	121,660	93,423	96,666	98,781	99,002	85,465	93,488	94,144	89,788
Working capital turnover		7.54	8.50	8.33	6.84	6.91	7.32	5.66	5.21	5.42	7.40	6.54	6.45	9.33	9.76	11.25	9.15	8.41	8.40	8.59	8.29

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,010,497K ÷ ($415,153K – $148,587K)
= 7.54

Cross Country Healthcares, Inc. has shown consistent improvement in its working capital turnover ratio over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

The trend indicates that the company has been able to effectively manage its working capital and convert it into sales at a faster rate. The gradual increase in the working capital turnover ratio from Q1 2022 to Q3 2023 suggests that Cross Country Healthcares, Inc. has been able to optimize its operations and improve its liquidity position.

During this period, the company has enhanced its ability to efficiently utilize its current assets and liabilities to support its sales activities. The higher working capital turnover ratios indicate that Cross Country Healthcares, Inc. has been successful in managing its working capital cycle effectively, possibly through improved inventory management, faster collection of receivables, or better payment terms with suppliers.

Overall, the increasing trend in the working capital turnover ratio reflects positively on the company's operational efficiency and financial management practices, demonstrating its ability to effectively leverage its working capital to drive sales growth.