CorVel Corp (CRVL)
Receivables turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 895,589 | 871,308 | 845,638 | 816,780 | 795,311 | 773,521 | 750,604 | 732,508 | 718,562 | 704,478 | 689,600 | 669,917 | 646,230 | 620,381 | 597,379 | 575,664 | 552,644 | 554,158 | 560,744 | 571,686 |
| Receivables | US$ in thousands | 104,126 | 106,178 | 102,393 | 97,749 | 97,108 | 92,657 | 86,937 | 84,176 | 81,034 | 82,791 | 84,787 | 81,090 | 82,586 | 69,545 | 69,438 | 67,257 | 64,722 | 63,579 | 73,095 | 67,469 |
| Receivables turnover | 8.60 | 8.21 | 8.26 | 8.36 | 8.19 | 8.35 | 8.63 | 8.70 | 8.87 | 8.51 | 8.13 | 8.26 | 7.82 | 8.92 | 8.60 | 8.56 | 8.54 | 8.72 | 7.67 | 8.47 |
March 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $895,589K ÷ $104,126K
= 8.60
The receivables turnover ratio for CorVel Corp has shown moderate fluctuations over the past few years. It ranged from a low of 7.67 in September 2020 to a high of 8.92 in December 2021. Generally, the ratio has been relatively stable around the 8.0 level, indicating that, on average, the company collects its accounts receivable approximately 8 times a year.
A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, which is generally considered positive. However, a too high ratio might indicate overly aggressive credit and collection policies that could potentially impact sales. On the other hand, a lower receivables turnover ratio could indicate potential issues with the company's credit policies or difficulties in collecting outstanding debts.
Overall, a consistent receivables turnover ratio around 8.0 for CorVel Corp suggests that the company has been effectively managing its accounts receivable in recent years, but it would be important to monitor any significant deviations from this trend to assess the company's financial health and operational efficiency.