DaVita HealthCare Partners Inc (DVA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.37 | 1.16 | 1.43 | 1.19 | 1.24 | 1.25 | 1.19 | 1.20 | 1.26 | 1.41 | 1.29 | 1.32 | 1.62 | 1.67 | 1.67 | 1.27 | 1.37 | 1.35 | 1.81 |
| Quick ratio | 1.17 | 1.28 | 1.08 | 1.31 | 1.08 | 1.14 | 1.14 | 1.10 | 1.14 | 1.20 | 1.35 | 1.20 | 1.23 | 1.53 | 1.55 | 1.53 | 1.15 | 1.28 | 1.33 | 1.71 |
| Cash ratio | 0.31 | 0.39 | 0.16 | 0.15 | 0.17 | 0.20 | 0.16 | 0.17 | 0.16 | 0.21 | 0.21 | 0.16 | 0.23 | 0.48 | 0.48 | 0.41 | 0.16 | 0.31 | 0.76 | 0.65 |
DaVita HealthCare Partners Inc's liquidity ratios, as measured by the current ratio, quick ratio, and cash ratio, demonstrate the company's ability to meet its short-term financial obligations.
The current ratio has shown some fluctuations over the years, ranging from a low of 1.20 to a high of 1.81. Generally, a current ratio above 1 indicates that DaVita has more current assets than current liabilities, providing a buffer in meeting its short-term debts. However, the decreasing trend in recent periods, with the ratio declining to 1.16 in June 2024, may warrant closer monitoring.
Meanwhile, the quick ratio, which excludes inventory from current assets, also suggests DaVita's ability to cover short-term obligations without relying on the sale of inventory. The quick ratio has fluctuated within a relatively narrow range, indicating a consistent ability to meet immediate liabilities with liquid assets.
Lastly, the cash ratio measures DaVita's ability to cover current liabilities with cash and cash equivalents alone. The company's cash ratio has varied, reaching a low of 0.15 in March 2024 and a high of 0.48 in June 2021. The increasing cash ratio in recent periods, particularly in September and December 2024, may indicate a strengthening liquidity position.
Overall, DaVita HealthCare Partners Inc appears to maintain a reasonable level of liquidity, supported by healthy current, quick, and cash ratios. However, the downward trend in the current ratio and fluctuations in the cash ratio suggest the need for ongoing monitoring to ensure the company's ability to meet its short-term obligations remains robust.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of DaVita HealthCare Partners Inc fluctuated over the periods mentioned in the data. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Looking at the data provided, we see that the cash conversion cycle was relatively stable in the first half of 2020, averaging around 26 days. However, there was a significant improvement in the cycle by the end of 2020, with the cycle decreasing to about 11 days. This indicates that the company was able to manage its inventory and accounts receivable more efficiently, resulting in quicker cash generation from its operations.
Subsequently, the cash conversion cycle increased in the first quarter of 2021, reaching a peak of 36 days. This sudden increase may suggest challenges in managing working capital effectively during that period. However, the company managed to reduce the cycle in the following quarters, maintaining it below 30 days for most of 2021 and 2022.
In the most recent data points, the cash conversion cycle declined to around 12 days by the end of 2024, indicating a further improvement in the company's efficiency in managing its cash flows. Overall, the trend in the cash conversion cycle of DaVita HealthCare Partners Inc reflects periods of optimization in working capital management, with the company successfully reducing the time it takes to convert its investments into cash.