DaVita HealthCare Partners Inc (DVA)
Working capital 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 |
| Total current assets | US$ in thousands | 3,137,910 | 3,155,290 | 3,167,720 | 3,148,720 | 3,690,170 |
| Total current liabilities | US$ in thousands | 2,642,210 | 2,619,750 | 2,398,530 | 2,476,140 | 2,372,100 |
| Working capital turnover | 24.49 | 21.68 | 15.11 | 17.17 | 8.64 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,140,100K ÷ ($3,137,910K – $2,642,210K)
= 24.49
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support its operations.
DaVita Inc's working capital turnover has shown an increasing trend over the past five years, from 8.64 in 2019 to 24.49 in 2023. This implies that the company has been able to generate more revenue for each dollar of working capital invested.
The significant improvement in the working capital turnover ratio reflects DaVita Inc's ability to optimize its working capital management, potentially by efficiently managing inventory, accounts receivable, and accounts payable. This could indicate improved liquidity and efficiency in the company's operations.
Overall, the upward trend in the working capital turnover ratio for DaVita Inc suggests enhanced operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023