Centene Corp (CNC)
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 | 153,999,000 | 150,100,000 | 147,923,000 | 146,251,000 | 144,547,000 | 141,554,000 | 138,095,000 | 133,184,000 | 125,982,000 | 121,702,000 | 118,386,000 | 115,073,000 | 111,115,000 | 101,690,000 | 91,576,000 | 82,220,000 | 74,639,000 | 72,335,000 | 69,541,000 | 65,366,000 |
| Total current assets | US$ in thousands | 40,756,000 | 41,405,000 | 34,866,000 | 35,009,000 | 30,128,000 | 33,275,000 | 32,406,000 | 31,110,000 | 28,497,000 | 28,056,000 | 25,464,000 | 24,440,000 | 23,393,000 | 27,275,000 | 26,822,000 | 24,696,000 | 20,323,000 | 13,457,000 | 13,596,000 | 13,616,000 |
| Total current liabilities | US$ in thousands | 36,716,000 | 36,851,000 | 31,306,000 | 32,857,000 | 28,464,000 | 31,330,000 | 29,086,000 | 29,685,000 | 25,765,000 | 25,042,000 | 23,642,000 | 22,279,000 | 21,585,000 | 21,795,000 | 21,918,000 | 21,651,000 | 12,932,000 | 13,280,000 | 12,653,000 | 13,143,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $153,999,000K ÷ ($40,756,000K – $36,716,000K)
= 38.12
Centene Corp.'s working capital turnover has shown some fluctuations over the past eight quarters. The ratio reached its lowest point in Q3 2023 at 32.96 and its highest point in Q1 2023 at 67.96. Generally, the company's working capital turnover has been relatively high, indicating efficient utilization of its working capital to generate sales revenue. This efficiency peaked in Q1 2022 at 93.46 and hit a low point in Q4 2022 at 86.87.
A high working capital turnover ratio suggests that Centene Corp. is managing its working capital effectively to support its operations and generate revenue. It implies that the company is efficiently using its current assets to fund its day-to-day operations and sales activities. However, the fluctuations in the ratio over the past quarters may indicate changing business conditions or management strategies impacting the efficiency of working capital utilization.
Overall, Centene Corp.'s working capital turnover ratio has shown variability but has generally remained at levels indicating efficient management of working capital to support its business activities. However, it is important for the company to continue monitoring and optimizing its working capital turnover to sustain operational efficiency and financial performance.
Peer comparison
Dec 31, 2023