Centene Corp (CNC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 38.12 | 32.96 | 41.55 | 67.96 | 86.87 | 72.78 | 41.59 | 93.46 | 46.11 | 40.38 | 64.98 | 53.25 | 61.46 | 18.56 | 18.67 | 27.00 | 10.10 | 408.67 | 73.74 | 138.19 |
Inventory turnover cannot be analyzed due to missing data.
The receivables turnover for Centene Corp. has shown a consistent trend of fluctuation over the past eight quarters, ranging between 8.24 and 10.89. This ratio indicates the number of times a company collects its accounts receivable balance during a period. A higher turnover ratio suggests that the company efficiently collects payments from its customers. Centene's receivables turnover has generally been above 9, which indicates a relatively good ability to convert credit sales into cash.
Payables turnover data is not available for analysis.
The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales. Centene Corp.'s working capital turnover ratio has shown significant variability, ranging from 32.96 to 93.46 over the past eight quarters. The trend indicates fluctuations in the company's efficiency in utilizing its working capital to drive sales. A higher working capital turnover ratio generally suggests better utilization of working capital to generate revenue, while a lower ratio may indicate inefficiencies in working capital management. It is important for Centene to analyze the reasons behind the fluctuations in this ratio to ensure optimal utilization of its working capital resources.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the activity ratios provided for Centene Corp., we can analyze its efficiency in managing inventory, collecting receivables, and paying suppliers.
Days of Inventory on Hand (DOH): Unfortunately, specific data for the DOH ratio is not provided in the table for any of the quarters listed. DOH measures how many days it takes for a company to sell its average inventory. This ratio is important as a lower DOH usually indicates efficient inventory management.
Days of Sales Outstanding (DSO): The DSO ratio for Centene Corp. ranges from 33.51 days to 37.96 days across the quarters listed. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is efficient in collecting payments from customers.
Number of Days of Payables: Unfortunately, specific data for the number of days of payables is not provided in the table for any of the quarters listed. This ratio typically measures how long it takes a company to pay its suppliers. A longer period may indicate that the company is effectively using their suppliers' credit to fund operations.
In general, while Centene Corp.'s DSO ratios suggest relatively stable performance in collecting receivables, the lack of information regarding DOH and payables hinders a comprehensive analysis of the company's overall activity ratios and efficiency in managing its working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 76.27 | 74.90 | 61.23 | 59.02 | 59.44 | 57.10 | 54.01 | 37.17 | 37.15 | 36.86 | 40.65 | 40.78 | 40.06 | 38.10 | 36.00 | 33.71 | 35.19 | 36.29 | 37.03 | 36.31 |
| Total asset turnover | 1.82 | 1.78 | 1.79 | 1.76 | 1.88 | 1.74 | 1.70 | 1.61 | 1.61 | 1.57 | 1.65 | 1.64 | 1.62 | 1.49 | 1.34 | 1.24 | 1.82 | 2.11 | 2.02 | 1.95 |
The analysis of Centene Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, reveals important insights into the company's efficiency in utilizing its assets to generate revenue.
The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. A high fixed asset turnover ratio suggests that Centene Corp. is effectively using its long-term assets to generate revenue. Over the past eight quarters, the fixed asset turnover ratio has been consistently increasing from Q1 2022 to Q4 2023, which is a positive trend indicating improving efficiency in utilizing fixed assets.
On the other hand, the total asset turnover ratio measures the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio indicates better efficiency in utilizing all assets to generate revenue. Centene Corp.'s total asset turnover ratio has shown some fluctuations over the period analyzed but generally remains within a stable range.
Overall, the increasing trend in the fixed asset turnover ratio and the stable total asset turnover ratio suggest that Centene Corp. is efficiently utilizing its assets, particularly fixed assets, to generate sales. This efficiency is critical for the company's long-term financial performance and sustainable growth.