CorVel Corp (CRVL)

Short-term

Turnover ratios

1. Inventory Turnover: The company's inventory turnover ratio is not provided for the years 2021 to 2025. This may indicate that the company does not hold significant inventory or operates in a service-based industry where inventory turnover is not applicable.

2. Receivables Turnover: CorVel Corp's receivables turnover has been fluctuating over the years. It decreased from 8.54 in 2021 to 0.01 in 2025. A significant decrease in receivables turnover could suggest potential issues with collecting payments from customers efficiently, which may impact the company's cash flow and liquidity.

3. Payables Turnover: The payables turnover ratio has shown a gradual increase from 34.73 in 2021 to 38.00 in 2024, indicating that the company is taking less time to pay off its suppliers. However, the ratio is not provided for 2025, so it is unclear if this trend continued.

4. Working Capital Turnover: The working capital turnover ratio has varied significantly over the years, ranging from 0.00 in 2025 to 9.47 in 2023. A working capital turnover ratio of 0.00 in 2025 may imply that the company's working capital was not effectively utilized to generate revenue during that period.

In conclusion, CorVel Corp's activity ratios exhibit fluctuations and a lack of data for certain years. While the payables turnover showed improvement, the significant decrease in receivables turnover and the working capital turnover being zero in 2025 raise concerns about the company's management of accounts receivable and working capital efficiency. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and operational effectiveness.

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Average number of days

Based on the provided data for CorVel Corp, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- Unfortunately, the data for the Days of Inventory on Hand (DOH) is not available for any of the years from 2021 to 2025. Without this information, we are unable to assess how efficiently CorVel is managing its inventory levels.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding (DSO) measures how long it takes for the company to collect its accounts receivable. Interestingly, the DSO figures for CorVel show a fluctuating trend over the years:
- In March 2021, the DSO was 42.75 days.
- By March 2022, it increased to 46.65 days.
- It then decreased to 41.16 days by March 2023 but surprisingly spiked to 44.57 days by March 2024.
- The DSO for March 2025 is unusually high at 42,436.87 days, which may be due to data reporting errors or irregularities.
- Generally, a lower DSO is preferred as it indicates quicker collection of receivables, contributing to healthier cash flows. However, the erratic changes in CorVel's DSO warrant further investigation to understand the underlying reasons.

3. Number of Days of Payables:
- The Number of Days of Payables metric reflects how long it takes the company to pay its suppliers. In the case of CorVel Corp:
- They took 10.51 days to pay their payables by March 2021.
- This number slightly decreased to 10.40 days by March 2022 and further decreased to 9.81 days by March 2023.
- A continued reduction was seen with only 9.60 days to pay payables by March 2024.
- The data for March 2025 is not available, making it challenging to assess the most recent trend.
- A lower number of days of payables indicates that the company is managing its payables more efficiently by paying suppliers more promptly, which can impact cash flow and relationships with suppliers positively.

In conclusion, while the DSO and payables metrics provide some insights into CorVel Corp's accounts receivable and payable management, the lack of data for inventory turnover hinders a comprehensive assessment of the company's overall activity ratios. The unusually high DSO in March 2025 should be scrutinized for accuracy and potential underlying issues.

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Long-term

CorVel Corp has shown a consistent improvement in its Fixed Asset Turnover ratio, indicating more efficient utilization of its fixed assets to generate sales. The ratio has steadily increased from 6.28 in March 31, 2021, to 8.68 in March 31, 2023. This upward trend suggests that the company is effectively managing and utilizing its long-term assets to drive revenue growth.

However, it is noteworthy that the Fixed Asset Turnover ratio data is missing for the years ending in March 31, 2024, and March 31, 2025. The absence of this data hinders a complete assessment of the company's long-term asset efficiency for those years.

In terms of Total Asset Turnover, CorVel Corp has shown a generally positive trend with an increasing ratio from 1.30 in March 31, 2021, to 1.82 in March 31, 2023. This indicates that the company is generating more sales relative to its total assets over the period. However, there is a slight dip in the ratio to 1.75 in March 31, 2024, followed by a missing data point for March 31, 2025, which prevents a thorough analysis for those years.

Overall, the analysis of the long-term activity ratios suggests that CorVel Corp has been effectively utilizing its assets to drive revenue growth, although the missing data points in recent years necessitate a closer examination of its asset efficiency for a comprehensive evaluation.