DaVita HealthCare Partners Inc (DVA)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 19.39 | 19.24 | 19.47 | 21.11 |
| Days of sales outstanding (DSO) | days | 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 | 73.88 | 77.18 | 82.75 | 80.30 |
| Number of days of payables | days | 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 | 79.96 | 64.77 | 78.20 | 73.96 |
| Cash conversion cycle | days | 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 | 13.31 | 31.64 | 24.02 | 27.45 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.26 + 72.64 – 83.64
= 12.26
The cash conversion cycle of DaVita Inc has shown a consistent trend in recent quarters, with a slight decrease in Q4 2023 compared to the previous quarter. The company's cash conversion cycle ranged from 72.64 days to 80.19 days over the past eight quarters, indicating the time it takes for DaVita to convert its investments in inventory and accounts receivable into cash flow from sales.
A lower cash conversion cycle is generally preferred as it signifies a more efficient management of working capital. DaVita's cash conversion cycle has been relatively stable around the 70-80 days range, indicating that the company is managing its working capital effectively, but there may still be room for improvement.
It is important for DaVita to continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in its operations and to maximize cash flow. Further analysis and comparison with industry standards could provide additional insights into the company's performance in managing its cash conversion cycle.
Peer comparison
Dec 31, 2023