Healthcare Services Group Inc (HCSG)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,664,939 | 1,662,797 | 1,671,964 | 1,678,501 | 1,690,839 | 1,688,983 | 1,688,540 | 1,662,128 | 1,641,959 | 1,644,689 | 1,665,046 | 1,718,904 | 1,760,303 | 1,784,086 | 1,803,745 | 1,813,817 | 1,840,878 | 1,890,326 | 1,941,491 | 1,983,022 |
| Receivables | US$ in thousands | 383,509 | 368,975 | 380,987 | 352,532 | 343,406 | 352,924 | 335,309 | 324,144 | 302,201 | 289,725 | 271,081 | 252,778 | 255,474 | 277,031 | 295,261 | 303,804 | 340,930 | 349,654 | 346,765 | 353,106 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,664,939K ÷ $383,509K
= 4.34
Healthcare Services Group, Inc.'s receivables turnover has shown a fluctuating trend over the past eight quarters, ranging from 4.36 to 5.12. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently.
In Q1 2022, the receivables turnover was 5.12, which means the company collected its outstanding receivables 5.12 times during the quarter. The ratio decreased in subsequent quarters before reaching a low of 4.36 in Q4 2023.
While a declining trend in receivables turnover could potentially indicate inefficiencies in collecting outstanding balances, it is essential to compare this ratio with industry benchmarks and historical performance to draw more definitive conclusions about Healthcare Services Group, Inc.'s receivables management efficiency. Additionally, further analysis of the company's credit policy, customer payment behavior, and economic conditions impacting the healthcare industry would provide a more comprehensive understanding of the factors influencing the receivables turnover ratio.