DaVita HealthCare Partners Inc (DVA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.71 | 20.50 | 20.28 | 23.29 | 23.26 | 18.22 | 18.37 | 18.30 | 19.08 | 19.39 | 20.87 | 20.73 | 20.90 | 24.18 | 23.34 | 23.45 | 22.87 | 20.69 | 19.14 | 19.18 |
| Days of sales outstanding (DSO) | days | 72.85 | 75.83 | 79.65 | 88.49 | 72.64 | 72.86 | 73.60 | 74.54 | 80.19 | 78.20 | 82.72 | 78.61 | 75.73 | 78.52 | 80.50 | 82.45 | 77.07 | 76.78 | 76.93 | 75.33 |
| Number of days of payables | days | 88.29 | 77.60 | 78.97 | 78.24 | 83.64 | 72.36 | 71.28 | 76.77 | 83.88 | 75.69 | 76.67 | 83.36 | 78.23 | 82.18 | 76.11 | 70.19 | 88.98 | 75.64 | 69.84 | 68.16 |
| Cash conversion cycle | days | 6.27 | 18.73 | 20.97 | 33.53 | 12.26 | 18.72 | 20.69 | 16.06 | 15.39 | 21.90 | 26.92 | 15.98 | 18.40 | 20.52 | 27.72 | 35.72 | 10.96 | 21.82 | 26.23 | 26.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.71 + 72.85 – 88.29
= 6.27
DaVita HealthCare Partners Inc's cash conversion cycle is a measure that indicates how long it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle implies that the company is able to efficiently manage its working capital and collect cash from its operations faster.
Analyzing the data provided, we observe fluctuations in DaVita's cash conversion cycle over the examined periods. The cycle ranged between 6.27 days (December 31, 2024) and 35.72 days (March 31, 2021), showcasing substantial variability in the company's working capital efficiency.
Key turning points in DaVita's cash conversion cycle include a significant decrease from 35.72 days on March 31, 2021, to 18.40 days on December 31, 2021. This reduction suggests an improvement in the company's ability to efficiently manage its working capital and convert it into cash.
Furthermore, there are instances of fluctuation where the cash conversion cycle increased and decreased within short periods, indicating potential challenges in managing the company's working capital efficiently during those particular periods.
Overall, DaVita HealthCare Partners Inc's cash conversion cycle analysis highlights the company's effectiveness in managing its working capital and converting it into cash flows. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and operational efficiency over time.
Peer comparison
Dec 31, 2024