DaVita HealthCare Partners Inc (DVA)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,262,200 | 2,245,510 | 2,087,800 | 1,875,950 | 1,878,020 |
| Payables | US$ in thousands | 547,200 | 514,533 | 479,780 | 402,049 | 434,253 |
| Payables turnover | 4.13 | 4.36 | 4.35 | 4.67 | 4.32 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,262,200K ÷ $547,200K
= 4.13
The payables turnover ratio for DaVita HealthCare Partners Inc has shown relatively stable performance over the period from December 31, 2020, to December 31, 2024. The ratio increased from 4.32 in 2020 to 4.67 in 2021, indicating an improvement in the company's ability to efficiently manage its accounts payable. However, in the subsequent years, the payables turnover ratio remained relatively consistent, ranging between 4.35 and 4.13.
A payables turnover ratio above 1 signifies that the company is efficiently managing its payables, with higher ratios indicating a faster turnover of payables, which may be beneficial in terms of cash flow management and supplier relationships. DaVita HealthCare Partners Inc's payables turnover ratios above 4 suggest that the company is effectively utilizing its accounts payable to support its operations and maintain healthy working capital levels.
Overall, the stable payables turnover ratios demonstrate DaVita HealthCare Partners Inc's consistent performance in managing its accounts payable over the specified period.
Peer comparison
Dec 31, 2024