DaVita HealthCare Partners Inc (DVA)

Short-term

Turnover ratios

DaVita HealthCare Partners Inc's activity ratios show a positive trend over the years.

1. Inventory Turnover: The company's inventory turnover has been steadily increasing, indicating that it is efficiently managing its inventory levels. This suggests that DaVita is selling its inventory more frequently, which is a positive sign for the company.

2. Receivables Turnover: DaVita's receivables turnover has also shown a slight increase from 2020 to 2024. This indicates that the company is collecting its accounts receivable at a faster rate, which is beneficial for maintaining healthy cash flows.

3. Payables Turnover: DaVita's payables turnover has been relatively consistent over the years, hovering around 4 times. This implies that the company is managing its payables effectively, ensuring timely payments to suppliers without unnecessary delays.

4. Working Capital Turnover: The working capital turnover of DaVita has shown some fluctuations but overall has improved from 2020 to 2023, before slightly decreasing in 2024. A higher working capital turnover ratio indicates that the company is utilizing its working capital efficiently to generate revenue.

In summary, DaVita HealthCare Partners Inc appears to be effectively managing its activity ratios, which is crucial for maintaining operational efficiency and financial health.

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Average number of days

DaVita HealthCare Partners Inc's activity ratios provide insights into how effectively the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has generally improved over the period, with DOH decreasing from 21.69 days in 2020 to 21.71 days in 2024.
- This indicates that DaVita is able to sell through its inventory faster, which is a positive sign of efficient inventory management.

2. Days of Sales Outstanding (DSO):
- DSO fluctuated over the period, ranging from 72.64 days in 2023 to 80.19 days in 2022.
- Despite the fluctuations, the company has maintained relatively stable collection periods, indicating that it efficiently collects payments from customers on credit sales.

3. Number of Days of Payables:
- DaVita's payment period to suppliers fluctuated but remained within a reasonable range over the period.
- The number of days of payables increased from 84.40 days in 2020 to 88.29 days in 2024, suggesting the company may be taking longer to pay its suppliers.

Overall, DaVita HealthCare Partners Inc's activity ratios reflect a generally efficient management of inventory and receivables, despite some fluctuations in payables. It is important for the company to monitor these ratios continuously to ensure optimal cash flow management and operational efficiency.

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Long-term

The fixed asset turnover ratio of DaVita HealthCare Partners Inc has been gradually increasing over the years, indicating improved efficiency in generating revenue from its fixed assets. From 3.28 in 2020, the ratio reached 4.36 in 2024, suggesting that the company is utilizing its fixed assets more effectively to generate sales.

When looking at the total asset turnover ratio, we see a similar trend of improvement. The ratio has shown a consistent increase from 0.68 in 2020 to 0.74 in 2024. This implies that DaVita is generating more revenue relative to its total assets, which is a positive indication of operational efficiency and effective asset utilization over the years.

Overall, the long-term activity ratios of DaVita HealthCare Partners Inc reflect a trend of enhanced efficiency in generating revenue from both fixed assets and total assets, indicating improved operational performance and potentially higher profitability in the future.