Healthcare Services Group Inc (HCSG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 88.82 | 78.83 | 70.70 | 54.39 | 47.25 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.71 | 4.71 | 5.12 | 4.62 | 4.29 |
The analysis of Healthcare Services Group Inc's activity ratios reveals the following trends:
1. Inventory Turnover:
- The inventory turnover increased steadily from 47.25 in 2020 to 88.82 in 2024. This indicates that the company is managing its inventory more efficiently, selling goods quickly, and replenishing stock at an increasing rate over the years.
2. Receivables Turnover:
- Data for receivables turnover is not available for any of the years, which may suggest that the company operates on a cash basis or does not extend credit to customers.
3. Payables Turnover:
- Similarly, information on payables turnover is not provided for any of the years, making it difficult to assess how quickly the company pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio fluctuated slightly over the years, ranging from 4.29 in 2020 to 5.12 in 2022, and then stabilizing around 4.71 in 2023 and 2024. This indicates that the company is effectively using its working capital to generate sales, with a slight peak in 2022.
Overall, the increasing trend in inventory turnover and relatively stable working capital turnover suggest that Healthcare Services Group Inc is managing its assets efficiently, though further information on receivables and payables turnover would provide a more comprehensive assessment of the company's overall activity performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.11 | 4.63 | 5.16 | 6.71 | 7.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) is a measure that indicates how many days, on average, a company holds its inventory before selling it. A declining trend in DOH is usually favorable as it suggests efficient inventory management. Healthcare Services Group Inc has shown a consistent improvement in its DOH from 7.73 days as of December 31, 2020, to 4.11 days as of December 31, 2024. This indicates that the company has been able to sell its inventory at a faster pace over the years.
The Days of Sales Outstanding (DSO) ratio is a measure of how many days, on average, it takes for a company to collect revenue after a sale is made. However, the data provided does not include DSO values for Healthcare Services Group Inc, so it is difficult to assess the company's efficiency in collecting payments from customers based on this ratio.
The Number of Days of Payables ratio represents the average number of days it takes for a company to pay its suppliers for goods or services purchased on credit. Similar to DSO, there are no values provided for this ratio for Healthcare Services Group Inc, making it challenging to evaluate the company's payment practices.
In conclusion, based on the provided data, Healthcare Services Group Inc has shown improvements in its inventory turnover efficiency over the years, but without information on DSO and payables, a comprehensive analysis of the company's overall activity ratios is limited.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 73.57 | 58.43 | 66.27 |
| Total asset turnover | 2.14 | 2.11 | 2.35 | 2.11 | 2.24 |
To analyze Healthcare Services Group Inc's long-term activity ratios, we can look at two key ratios: Fixed Asset Turnover and Total Asset Turnover.
1. Fixed Asset Turnover:
- In 2020, the Fixed Asset Turnover ratio was 66.27, indicating that the company generated $66.27 in revenue for every dollar invested in fixed assets.
- The ratio decreased to 58.43 in 2021, suggesting a decrease in efficiency in utilizing fixed assets to generate sales.
- However, there was an improvement in 2022, with the ratio increasing to 73.57, reflecting better efficiency in generating revenue from fixed assets.
- There is no data available for 2023 and 2024, which may be due to missing information or changes in reporting.
2. Total Asset Turnover:
- In 2020, the Total Asset Turnover ratio stood at 2.24, meaning that the company generated $2.24 in revenue for every dollar of total assets.
- The ratio decreased to 2.11 in 2021, indicating a slight decline in efficiency in utilizing total assets to generate sales.
- It increased to 2.35 in 2022, showing improved efficiency in generating revenue from total assets.
- The ratio remained stable at 2.11 in 2023 and increased slightly to 2.14 in 2024.
In summary, Healthcare Services Group Inc's Fixed Asset Turnover and Total Asset Turnover ratios have shown variability over the years, with fluctuations in efficiency in generating revenue from fixed and total assets. The company should continue to monitor these ratios to ensure optimal utilization of assets for revenue generation.