HealthStream Inc (HSTM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 7.79 | 23.55 | — | 39.52 | — |
The activity ratios for HealthStream Inc indicate the company's efficiency in managing its assets and liabilities:
1. Inventory Turnover: The data shows that inventory turnover ratios were not available for the years 2020 to 2024. This could suggest that HealthStream operates with a low level of inventory or that specific inventory information is not disclosed.
2. Receivables Turnover: Similar to inventory turnover, receivables turnover ratios were not provided for the years 2020 to 2024. This may indicate that the company does not provide detailed information on its receivables management or that receivables turnover is not a significant metric for HealthStream.
3. Payables Turnover: The data does not include payables turnover ratios for the years 2020 to 2024. Payables turnover ratios could provide insights into how quickly the company pays its suppliers, manages its trade credit, or its relationships with vendors.
4. Working Capital Turnover: The working capital turnover ratios for HealthStream Inc were 39.52 in 2021, 23.55 in 2023, and 7.79 in 2024. A high working capital turnover ratio indicates efficient utilization of working capital to generate sales. The decrease in the ratio from 2021 to 2024 suggests a potential decline in the company's ability to generate sales using its working capital efficiently. This trend could be further investigated to understand the underlying factors affecting the company's working capital management and operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
HealthStream Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, are not provided in the data set. Without specific values for these ratios for the years 2020 to 2024, it is difficult to assess the company's efficiency in managing its inventory, accounts receivable, and accounts payable.
Activity ratios track how efficiently a company is using its resources to generate sales and manage its working capital. DOH measures how long it takes for inventory to be sold or used, DSO indicates the average number of days it takes to collect accounts receivable, and the Number of Days of Payables shows how many days a company takes to pay its trade payables.
To gain a comprehensive understanding of HealthStream Inc's operational efficiency, it is important to have the actual values of these activity ratios to compare them over time and against industry benchmarks. These ratios help evaluate the company's inventory management, sales collection efficiency, and payment practices towards suppliers, influencing the overall liquidity and profitability of the business.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.98 | 5.95 | 11.02 |
| Total asset turnover | 0.57 | 0.56 | 0.54 | 0.53 | 0.49 |
The fixed asset turnover ratio for HealthStream Inc has shown a fluctuating trend over the years. In 2020, the company had a high fixed asset turnover ratio of 11.02, indicating that the company generated $11.02 in revenue for every dollar invested in fixed assets. However, this ratio decreased to 5.95 in 2021, indicating a decline in efficiency in utilizing fixed assets to generate revenue. The ratio improved in 2022 to 6.98 but lacked data for 2023 and 2024.
On the other hand, the total asset turnover ratio, which measures the company's ability to generate revenue from all its assets, increased steadily from 0.49 in 2020 to 0.57 in 2024. This indicates an improvement in the company's overall efficiency in generating sales from its total assets over the years. Overall, it is essential for HealthStream Inc to monitor and analyze these activity ratios continuously to ensure optimal utilization of its assets for revenue generation.