Community Healthcare Trust Inc (CHCT)
Working capital 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 |
| Total current assets | US$ in thousands | 3,962 | 11,916 | 3,247 | 2,962 | 2,423 |
| Total current liabilities | US$ in thousands | 67,410 | 11,377 | 7,845 | 41,339 | 3,606 |
| Working capital turnover | — | 181.22 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $112,845K ÷ ($3,962K – $67,410K)
= —
Community Healthcare Trust Inc's working capital turnover has fluctuated over the past five years. The ratio measures how efficiently the company is using its working capital to generate revenue. A higher working capital turnover indicates better efficiency in utilizing current assets to support sales.
In this case, the working capital turnover has varied significantly, ranging from a low of 1.98 in 2019 to a high of 4.93 in 2020. The significant increase in 2020 suggests that the company was able to generate $4.93 in revenue for every dollar of working capital invested during that year.
However, the ratio decreased in 2021 and 2022 to 3.37 and 2.32, respectively, indicating a potential decrease in efficiency in utilizing working capital. It then improved in 2023 to 3.02, but still below the peak seen in 2020.
Overall, it is essential for Community Healthcare Trust Inc to closely monitor and manage its working capital turnover to ensure efficient utilization of resources and maximize revenue generation.
Peer comparison
Dec 31, 2023