CorVel Corp (CRVL)

Receivables turnover

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Revenue (ttm) US$ in thousands 795,233 773,443 750,524 732,427 718,490 704,406 689,527 669,842 646,167 620,318 597,314 575,598 552,099 553,613 560,225 571,193 592,201 596,261 594,251 595,457
Receivables US$ in thousands 139,525 131,171 118,345 111,775 107,673 111,668 112,990 108,137 109,893 92,795 89,655 86,067 81,935 78,364 94,138 89,721 85,459 66,187 71,421 66,842
Receivables turnover 5.70 5.90 6.34 6.55 6.67 6.31 6.10 6.19 5.88 6.68 6.66 6.69 6.74 7.06 5.95 6.37 6.93 9.01 8.32 8.91

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $795,233K ÷ $139,525K
= 5.70

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher ratio indicates a faster turnover of receivables, which is generally preferable as it signifies that the company is collecting cash from its customers quickly.

Analyzing CorVel Corp's receivables turnover ratio over the past 20 quarters, we observe some fluctuation. The ratio ranged from a low of 5.70 to a high of 9.01, with an average of approximately 6.71 over this period.

The trend in the receivables turnover ratio for CorVel Corp fluctuated over the quarters but generally remained within a relatively consistent range. The company demonstrated a strong ability to collect payments from customers efficiently, as indicated by the ratios consistently above 5.

It's worth noting that the significant increase in the receivables turnover ratio to 9.01 in the fourth quarter of 2019 might signify a particularly effective period in collecting receivables. It is important to further investigate the reasons behind this sudden spike in efficiency.

Overall, the analysis of CorVel Corp's receivables turnover ratio suggests that the company effectively manages its accounts receivable and generally exhibits a healthy trend in collecting payments from customers in a timely manner.