DaVita HealthCare Partners Inc (DVA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,140,100 | 11,609,900 | 11,618,800 | 11,550,600 | 11,388,500 |
| Receivables | US$ in thousands | 2,415,910 | 2,550,650 | 2,410,510 | 2,438,820 | 2,305,060 |
| Receivables turnover | 5.03 | 4.55 | 4.82 | 4.74 | 4.94 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,140,100K ÷ $2,415,910K
= 5.03
The receivables turnover ratio for DaVita Inc has shown a gradual fluctuation over the past five years. The ratio measures the efficiency with which the company is able to collect payments from its customers. A higher receivables turnover ratio indicates that DaVita Inc is collecting its accounts receivable more frequently within a given period.
In 2023, the receivables turnover ratio of DaVita Inc increased to 5.03 from 4.55 in 2022, representing an improvement in the company's ability to efficiently collect payments from customers. This indicates that DaVita Inc was able to turn over its accounts receivable 5.03 times during the year, compared to 4.55 times in the previous year.
While there were fluctuations in the ratio over the five-year period, the overall trend shows that the company has been effectively managing its accounts receivable turnover. This suggests that DaVita Inc has been successful in maintaining a balance between providing credit to customers and collecting payments in a timely manner.
Overall, the increasing trend in the receivables turnover ratio for DaVita Inc indicates a positive sign of efficient accounts receivable management, which is crucial for the company's financial health and liquidity.
Peer comparison
Dec 31, 2023