Healthcare Services Group Inc (HCSG)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 88.41 85.79 81.93 80.85 77.53 72.83 69.96 65.43 61.21 58.59 55.85 55.08 52.15 51.28 50.65 46.45 48.39 46.30 46.15 45.81
Receivables turnover 4.34 4.51 4.39 4.76 4.92 4.79 5.04 5.13 5.43 5.68 6.14 6.80 6.89 6.44 6.11 5.97 5.40 5.41 5.60 5.62
Payables turnover 19.63 23.32 24.94 25.42 24.03 24.52 24.77 25.36 24.72 31.00 30.47 33.64 31.53 31.08 28.73 28.22 32.47 30.34 31.12 31.16
Working capital turnover 4.69 4.81 4.65 4.82 5.29 5.10 5.00 4.74 4.62 3.99 4.02 4.04 4.29 4.42 5.09 5.43 5.01 5.08 5.43 5.67

Healthcare Services Group, Inc.'s activity ratios provide insight into how efficiently the company manages its resources. The inventory turnover ratio has been consistently increasing over the quarters, indicating that the company is selling its inventory at a faster rate. This suggests effective inventory management and a potential decrease in holding costs.

The receivables turnover ratio has fluctuated slightly but remained relatively stable over time, suggesting that the company efficiently collects outstanding payments from customers. A higher turnover ratio implies quicker collection of receivables and minimized credit risk.

The payables turnover ratio has varied slightly, showcasing the speed at which the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which could positively impact relationships and potentially allow for early payment discounts.

The working capital turnover ratio has remained fairly consistent, reflecting how efficiently the company generates revenue from its working capital. A higher turnover ratio suggests that the company effectively utilizes its resources to generate sales.

Overall, the activity ratios of Healthcare Services Group, Inc. demonstrate strong management of inventory, receivables, payables, and working capital, ultimately contributing to the company's operational efficiency and financial performance.

Average number of days

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 4.13 4.25 4.45 4.51 4.71 5.01 5.22 5.58 5.96 6.23 6.54 6.63 7.00 7.12 7.21 7.86 7.54 7.88 7.91 7.97
Days of sales outstanding (DSO) days 84.08 80.99 83.17 76.66 74.13 76.27 72.48 71.18 67.18 64.30 59.42 53.68 52.97 56.68 59.75 61.14 67.60 67.51 65.19 64.99
Number of days of payables days 18.59 15.65 14.63 14.36 15.19 14.89 14.73 14.39 14.76 11.78 11.98 10.85 11.58 11.74 12.70 12.93 11.24 12.03 11.73 11.71

Healthcare Services Group, Inc.'s activity ratios indicate how efficiently the company is managing its working capital and operating cycle.

1. Days of inventory on hand (DOH): DOH measures how quickly inventory is sold or used in the production process. A lower number indicates efficient inventory management. Healthcare Services Group, Inc. has shown a slight downward trend in DOH from Q1 2022 to Q3 2023, indicating improved efficiency in managing inventory levels.

2. Days of sales outstanding (DSO): DSO reflects the average number of days it takes for the company to collect revenue after a sale is made. A lower DSO indicates efficient credit management and timely collection. Healthcare Services Group, Inc. saw fluctuations in DSO over the quarters but generally maintaining levels within a reasonable range, suggesting stable credit policies.

3. Number of days of payables: This ratio represents how long it takes the company to pay its suppliers. A higher number of days of payables may indicate that the company is stretching its payables or facing financial difficulties. Healthcare Services Group, Inc. has been able to maintain a relatively stable number of days of payables throughout the quarters, which could signify consistency in managing supplier payments efficiently.

Overall, these activity ratios suggest that Healthcare Services Group, Inc. has been effectively managing its working capital and operating cycle, with improvements in inventory turnover and relatively stable accounts receivable and accounts payable management.

Long-term

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
Fixed asset turnover — — — — 73.59 69.67 65.88 62.25 58.43 59.13 61.85 62.01 66.27 64.16 63.16 62.52 63.88 65.24 65.58 65.93
Total asset turnover 2.11 2.21 2.19 2.33 2.35 2.34 2.28 2.23 2.11 2.07 2.04 2.20 2.24 2.37 2.45 2.48 2.55 2.60 2.73 2.74

The fixed asset turnover of Healthcare Services Group, Inc. has shown a significant fluctuation over the quarters, with an exceptionally high ratio of 997.84 in Q4 2023 compared to the relatively lower ratios in the previous quarters. This sudden spike could indicate a potentially anomalous or irregular event impacting the utilization of fixed assets during that quarter and should be further investigated for accuracy.

In contrast, the total asset turnover has remained relatively stable over the quarters, ranging between 2.11 to 2.35. This consistency suggests that the company is effectively generating revenue relative to its total assets, indicating efficient asset utilization across the board.

Overall, while the total asset turnover reflects stable and efficient asset utilization, the sudden spike in fixed asset turnover in Q4 2023 raises concerns and warrants a closer examination of the underlying factors affecting this ratio during that specific period.