Healthcare Services Group Inc (HCSG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,715,680 | 1,671,390 | 1,690,180 | 1,641,960 | 1,760,300 |
| Total current assets | US$ in thousands | 556,652 | 571,696 | 508,632 | 546,382 | 572,403 |
| Total current liabilities | US$ in thousands | 192,547 | 216,928 | 178,619 | 191,125 | 162,260 |
| Working capital turnover | 4.71 | 4.71 | 5.12 | 4.62 | 4.29 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,715,680K ÷ ($556,652K – $192,547K)
= 4.71
Healthcare Services Group Inc's working capital turnover has shown a generally increasing trend over the past five years, from 4.29 in December 31, 2020, to 4.71 in December 31, 2024. This indicates that the company has been able to generate more revenue from its working capital investments over time. However, there was a peak in 2022 with a ratio of 5.12, suggesting the company efficiently utilized its working capital to generate sales during that period. Overall, the consistency in the ratio above 4 indicates that Healthcare Services Group Inc effectively manages its working capital to support its operations and generate revenue.