Healthcare Services Group Inc (HCSG)
Working capital 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 |
| Total current assets | US$ in thousands | 571,696 | 533,363 | 549,086 | 510,087 | 508,632 | 512,693 | 521,852 | 524,827 | 546,382 | 566,064 | 590,492 | 572,190 | 572,403 | 537,519 | 523,541 | 520,556 | 515,732 | 531,912 | 509,003 | 525,006 |
| Total current liabilities | US$ in thousands | 216,928 | 187,774 | 189,664 | 162,164 | 189,014 | 181,822 | 183,929 | 174,304 | 191,125 | 153,854 | 176,623 | 146,907 | 162,260 | 134,296 | 169,495 | 186,284 | 148,651 | 160,009 | 151,391 | 175,482 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,664,939K ÷ ($571,696K – $216,928K)
= 4.69
The working capital turnover for Healthcare Services Group, Inc. has fluctuated over the past eight quarters. Generally, a higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales revenue.
In Q4 2023, the working capital turnover ratio decreased to 4.71 from 4.84 in Q3 2023. This could suggest a slight decrease in the efficiency of the company's working capital management in generating sales revenue during that period.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), the working capital turnover ratio decreased from 5.12 to 4.71, indicating a decline in the efficiency of working capital utilization in generating sales revenue.
Overall, despite some fluctuations, Healthcare Services Group, Inc. has maintained a working capital turnover ratio above 4.5 in the past eight quarters, indicating that the company has been efficiently using its working capital to generate sales revenue.