CorVel Corp (CRVL)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales revenue. Let's analyze the activity ratios of CorVel Corp based on the provided data:

1. Inventory Turnover:
Unfortunately, there is no data available for the inventory turnover ratio for CorVel Corp across the years analyzed. This ratio is crucial in determining how effectively a company is managing its inventory levels, as a higher turnover ratio indicates efficient inventory management.

2. Receivables Turnover:
The receivables turnover ratio for CorVel Corp has been generally declining over the past five years, from 6.93 in 2020 to 5.70 in 2024. A decreasing trend in this ratio may signify that the company is taking longer to collect its accounts receivables, which could potentially impact its liquidity and cash flow.

3. Payables Turnover:
CorVel Corp has shown consistent and impressive payables turnover ratios over the years, with the ratio increasing from 35.12 in 2020 to 42.70 in 2024. A high payables turnover ratio indicates that the company is efficiently managing its accounts payables by paying off its obligations quickly, which may positively impact its working capital management.

4. Working Capital Turnover:
The working capital turnover ratio for CorVel Corp has fluctuated over the years, with a peak of 9.46 in 2023 and a low of 5.18 in 2021. This ratio measures how effectively the company is utilizing its working capital to generate sales. A higher ratio is generally preferable, indicating efficient utilization of working capital.

In summary, while CorVel Corp has shown strength in managing its payables efficiently, there are areas of concern such as a declining trend in the receivables turnover ratio. The company should focus on improving its collection of accounts receivables to enhance its cash flow and overall liquidity position. Additionally, monitoring and optimizing inventory levels, if possible, could provide further insights into the company's operational efficiency.

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Average number of days

The activity ratios of CorVel Corp provide insights into the efficiency of the company's operations and management of its working capital.

1. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect payments from its customers. A lower DSO indicates faster collection of accounts receivable. CorVel Corp's DSO has shown fluctuation over the years, with a peak of 64.06 days in 2024 and a low of 52.68 days in 2020. The increase in DSO in 2024 compared to the previous year may suggest a slower collection of receivables, potentially impacting cash flow.

2. Days of Inventory on Hand (DOH): Unfortunately, the data for Days of Inventory on Hand is missing, which limits the analysis of CorVel Corp's inventory management efficiency. DOH typically measures how long it takes for the company to sell its inventory, with a lower DOH indicating efficient inventory turnover.

3. Number of Days of Payables: This ratio represents the number of days it takes the company to pay its suppliers. A higher number of days of payables suggests that the company is taking more time to pay its creditors, potentially indicating favorable cash flow management. CorVel Corp's days of payables have been relatively stable over the years, ranging from 8.55 days to 10.39 days.

In summary, while CorVel Corp has shown consistency in managing its payables, the fluctuations in Days of Sales Outstanding signal potential challenges in efficiently collecting receivables. The missing data for Days of Inventory on Hand hinders a complete assessment of the company's inventory management efficiency. Further analysis incorporating additional information would be needed to provide a more comprehensive evaluation of CorVel Corp's activity ratios.

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Long-term

The long-term activity ratios for CorVel Corp provide insights into the efficiency of the company in utilizing its fixed assets and total assets to generate revenue over the years.

1. Fixed Asset Turnover:
- CorVel Corp's fixed asset turnover has shown a consistent improvement over the past five years, increasing from 7.80 in 2020 to 9.26 in 2024.
- This ratio indicates that for every dollar invested in fixed assets, CorVel Corp generated $9.26 of revenue in 2024.
- The increasing trend in fixed asset turnover suggests that the company is becoming more efficient in utilizing its fixed assets to generate sales, which is a positive sign for its operations.

2. Total Asset Turnover:
- The total asset turnover for CorVel Corp has fluctuated over the years, with a peak of 1.82 in 2023 and a low of 1.30 in 2021.
- In 2024, the total asset turnover stands at 1.75, indicating that for every dollar of total assets, the company generated $1.75 of revenue.
- While the ratio has varied, the overall trend shows an improvement in how efficiently CorVel Corp is using its total assets to generate sales.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that CorVel Corp has been successful in increasing its efficiency in utilizing assets to drive revenue growth over the years, which is a positive indicator of the company's operational performance and productivity.