Healthcare Services Group Inc (HCSG)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,715,682 | 1,701,710 | 1,684,949 | 1,677,592 | 1,671,389 | 1,671,569 | 1,674,669 | 1,680,595 | 1,690,176 | 1,686,603 | 1,687,705 | 1,661,019 | 1,641,959 | 1,644,689 | 1,665,046 | 1,718,904 | 1,760,303 | 1,784,086 | 1,803,745 | 1,813,817 |
| Total current assets | US$ in thousands | 556,652 | 578,118 | 573,212 | 580,414 | 571,696 | 533,363 | 549,086 | 510,087 | 508,632 | 512,693 | 521,852 | 524,827 | 546,382 | 566,066 | 590,492 | 572,190 | 572,403 | 537,519 | 523,541 | 520,556 |
| Total current liabilities | US$ in thousands | 192,547 | 197,204 | 209,483 | 209,375 | 216,928 | 187,774 | 189,664 | 162,164 | 178,619 | 181,822 | 183,929 | 174,304 | 191,125 | 153,856 | 176,623 | 146,907 | 162,260 | 134,296 | 169,495 | 186,284 |
| Working capital turnover | 4.71 | 4.47 | 4.63 | 4.52 | 4.71 | 4.84 | 4.66 | 4.83 | 5.12 | 5.10 | 4.99 | 4.74 | 4.62 | 3.99 | 4.02 | 4.04 | 4.29 | 4.42 | 5.09 | 5.43 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,715,682K ÷ ($556,652K – $192,547K)
= 4.71
The working capital turnover for Healthcare Services Group Inc has been fluctuating over the past few years. The ratio indicates how efficiently the company is using its working capital to generate revenue.
From March 31, 2020, to September 30, 2021, the working capital turnover decreased steadily from 5.43 to 3.99, indicating a potential decrease in revenue generated from working capital during this period.
Furthermore, from December 31, 2021, to June 30, 2022, there was an increase in the working capital turnover from 4.62 to 4.99, suggesting an improvement in the company's efficiency in using working capital to generate revenue.
However, the ratio then slightly declined from September 30, 2022, to March 31, 2024, ranging from 5.10 to 4.52. This decline may indicate some challenges in maintaining or increasing revenue generation efficiency from working capital during this period.
Overall, it is crucial for Healthcare Services Group Inc to closely monitor its working capital turnover ratio to ensure efficient utilization of working capital resources to drive revenue growth effectively.