Centene Corp (CNC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 163,071,000 | 153,999,000 | 144,547,000 | 125,982,000 | 111,115,000 |
| Total current assets | US$ in thousands | 37,999,000 | 40,756,000 | 30,128,000 | 28,497,000 | 23,393,000 |
| Total current liabilities | US$ in thousands | 34,261,000 | 36,716,000 | 28,464,000 | 25,765,000 | 21,585,000 |
| Working capital turnover | 43.63 | 38.12 | 86.87 | 46.11 | 61.46 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $163,071,000K ÷ ($37,999,000K – $34,261,000K)
= 43.63
The working capital turnover for Centene Corp has exhibited fluctuations over the past five years, ranging from a low of 38.12 in December 2023 to a high of 86.87 in December 2022. This ratio measures how effectively the company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is efficiently using its working capital to generate sales, while a lower ratio may suggest inefficiencies in working capital management or a decrease in sales relative to working capital.
Centene Corp's working capital turnover showed a notable decrease from 61.46 in December 2020 to 46.11 in December 2021, indicating a potential decline in the efficiency of working capital utilization during that period. However, the ratio saw a significant improvement in December 2022 before declining again in the subsequent years.
It is essential for Centene Corp to closely monitor its working capital turnover to ensure optimal utilization of resources and maintain a healthy balance between working capital levels and revenue generation. Further analysis of underlying factors contributing to the fluctuations in the working capital turnover ratio could provide valuable insights for strategic decision-making and operational improvements.
Peer comparison
Dec 31, 2024