CorVel Corp (CRVL)

Short-term

Turnover ratios

Based on the data provided, let's analyze the activity ratios for CorVel Corp:

1. Inventory Turnover:
- Unfortunately, there is no data available for the inventory turnover ratio from June 30, 2020, to December 31, 2024. However, as of September 30, 2024, the inventory turnover ratio stands at 50.54, indicating that the company is efficiently managing its inventory by selling and replenishing it quickly.

2. Receivables Turnover:
- The receivables turnover ratio fluctuated slightly between June 30, 2020, and March 31, 2025, ranging from 7.67 to 8.60. This indicates that CorVel Corp is collecting its accounts receivable in a relatively stable and efficient manner.

3. Payables Turnover:
- The payables turnover ratio for CorVel Corp varied significantly over the same period, ranging from 26.72 on June 30, 2022, to 53.28 on June 30, 2024. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently and efficiently.

4. Working Capital Turnover:
- The working capital turnover ratio demonstrates how effectively the company is utilizing its working capital to generate sales. CorVel Corp's working capital turnover ratio increased steadily from 6.66 on June 30, 2020, to 10.02 on December 31, 2022, before declining to 3.47 on March 31, 2025. This indicates fluctuations in the company's efficiency in generating sales using its working capital.

In conclusion, CorVel Corp has shown varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the periods analyzed. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational performance and efficiency.

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Average number of days

CorVel Corp's activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales and cash flow. Here is a detailed analysis of the activity ratios based on the given data:

1. Days of Inventory on Hand (DOH):
The days of inventory on hand ratio measures how many days, on average, it takes for a company to sell its inventory. CorVel Corp's DOH fluctuated over the years, with the latest available data showing 7.22 days as of September 30, 2024. This indicates that the company is managing its inventory efficiently, as it takes a relatively short time to sell its inventory.

2. Days of Sales Outstanding (DSO):
The days of sales outstanding ratio reveals the average number of days it takes for the company to collect its accounts receivable. CorVel Corp's DSO varied but generally decreased over the years, with the most recent figure at 42.44 days as of March 31, 2025. A lower DSO indicates that the company is efficient in collecting receivables and converting sales into cash quickly.

3. Number of Days of Payables:
The number of days of payables ratio reflects how long it takes for a company to pay its suppliers. CorVel Corp's payables period fluctuated but generally decreased over the years, with the latest available data indicating 7.72 days as of December 31, 2024. A shorter payables period suggests that the company is managing its payables efficiently and potentially taking advantage of favorable credit terms.

Overall, based on the activity ratios analysis, CorVel Corp appears to be effectively managing its inventory, receivables, and payables, which can contribute to improved cash flow and operational efficiency.

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Long-term

CorVel Corp's fixed asset turnover ratio has shown fluctuation over the years. It increased from 7.69 in June 2020 to a high of 8.68 in March 2023 before decreasing to 6.64 by June 2023. As of September 30, 2023, the fixed asset turnover ratio was not available and remained unchanged for the subsequent periods.

The trend in the fixed asset turnover ratio indicates that CorVel Corp was effectively generating revenue from its fixed assets during the period under review, although the ratio slightly decreased towards the end of the period.

In comparison, CorVel Corp's total asset turnover ratio displayed an overall increasing trend over the years. It started at 1.35 in June 2020 and rose significantly to 2.62 by March 2025. The total asset turnover ratio reflects the company's efficiency in generating sales from its total assets, including both fixed and current assets.

The increasing trend in the total asset turnover ratio suggests that CorVel Corp improved its efficiency in asset utilization and sales generation during the period. This indicates that the company was able to generate more sales relative to its total asset base, which is a positive indicator of operational efficiency and productivity.

Overall, the analysis of CorVel Corp's long-term activity ratios, namely the fixed asset turnover and total asset turnover, shows some fluctuations and improvements in asset utilization and sales generation during the period under review. Further analysis and comparison with industry benchmarks could provide more insights into the company's performance in this aspect.