DaVita HealthCare Partners Inc (DVA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.71 | 23.26 | 19.08 | 20.90 | 21.69 |
| Days of sales outstanding (DSO) | days | 72.85 | 72.64 | 80.19 | 75.73 | 77.07 |
| Number of days of payables | days | 88.29 | 83.64 | 83.88 | 78.23 | 84.40 |
| Cash conversion cycle | days | 6.27 | 12.26 | 15.39 | 18.40 | 14.36 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.71 + 72.85 – 88.29
= 6.27
The cash conversion cycle for DaVita HealthCare Partners Inc has exhibited fluctuations over the past five years. In December 2020, the company had a cash conversion cycle of 14.36 days, which increased to 18.40 days by December 2021. Subsequently, the cycle decreased to 15.39 days by December 2022 and further decreased to 12.26 days by December 2023. Finally, by December 2024, the cycle significantly decreased to 6.27 days.
This trend indicates that DaVita HealthCare Partners Inc has been able to manage its cash conversion cycle more efficiently over the years, reducing the time it takes to convert its investments in inventory and accounts receivable into cash. The decreasing cycle implies that the company is improving its liquidity position and managing its working capital more effectively, which can positively impact its overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024