Concentra Group Holdings Parent, Inc. (CON)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,900,150 | 1,838,080 | 1,724,360 | 1,732,040 |
| Total current assets | US$ in thousands | 437,207 | 294,418 | 284,627 | — |
| Total current liabilities | US$ in thousands | 307,186 | 274,634 | 279,626 | — |
| Working capital turnover | 14.61 | 92.91 | 344.80 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,900,150K ÷ ($437,207K – $307,186K)
= 14.61
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. For Concentra Group Holdings Parent, Inc., the working capital turnover ratio has shown a significant fluctuation over the past few years. In December 31, 2022, the ratio was at an impressive 344.80, indicating that the company was able to generate a high level of sales revenue relative to its working capital. However, this ratio declined in the subsequent years, reaching 92.91 on December 31, 2023, and dropping further to 14.61 by December 31, 2024.
The sharp decrease in the working capital turnover ratio suggests that the company's efficiency in utilizing its working capital to generate sales revenue has declined significantly. This could be due to a variety of factors such as inefficient inventory management, aggressive sales practices, or ineffective accounts receivable management. It is important for Concentra Group Holdings Parent, Inc. to closely monitor and address the reasons behind this decline to improve its overall financial performance and efficiency in the future.
Peer comparison
Dec 31, 2024