Community Healthcare Trust Inc (CHCT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 112,845 | 97,679 | 90,579 | 75,684 | 60,849 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $112,845K ÷ $—K
= —
The receivables turnover ratio measures a company's efficiency in collecting outstanding revenue from its customers. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently.
Over the past five years, Community Healthcare Trust Inc's receivables turnover ratio has exhibited a declining trend. In 2019, the ratio was 7.34, indicating that the company collected its receivables approximately 7.34 times during the year. However, this ratio has decreased steadily to 4.88 in 2023.
The declining trend in the receivables turnover ratio suggests that Community Healthcare Trust Inc may be experiencing challenges in collecting its outstanding revenues efficiently. A lower receivables turnover ratio could indicate issues such as slower collections, increased credit risk, or inefficient accounts receivable management.
It is essential for the company to closely monitor its accounts receivable turnover and take necessary steps to improve collection efficiency and maintain healthy cash flow levels. This could involve tightening credit policies, incentivizing timely payments, or implementing more effective collection procedures to ensure prompt receipt of revenues.
Peer comparison
Dec 31, 2023