HealthStream Inc (HSTM)

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	279,064	277,019	273,965	270,405	266,826	262,607	259,413	258,591	256,692	254,193	250,985	246,722	244,826	245,703	247,270	250,498	254,113	251,243	248,718	241,945
Total current assets	US$ in thousands	130,210	126,879	118,013	125,108	114,377	104,351	95,333	107,226	106,845	112,256	110,167	114,977	114,725	199,097	198,680	200,656	224,572	222,967	214,481	223,742
Total current liabilities	US$ in thousands	118,361	114,582	109,151	121,004	117,213	105,390	104,914	114,562	100,350	101,950	105,918	116,906	119,442	95,014	92,442	102,474	105,185	99,699	98,313	110,982
Working capital turnover		23.55	22.53	30.91	65.89	—	—	—	—	39.52	24.66	59.07	—	—	2.36	2.33	2.55	2.13	2.04	2.14	2.15

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $279,064K ÷ ($130,210K – $118,361K)
= 23.55

Based on the available data, the working capital turnover for Healthstream Inc has shown fluctuations over the past four quarters. In Q1 2023, the working capital turnover was noted to be 65.89, indicating that the company generated $65.89 in revenue for every dollar of working capital invested. This high turnover ratio suggests efficient utilization of resources to generate sales during that period.

However, in the subsequent quarters, the working capital turnover ratio decreased to 30.91 in Q2 2023 and further dropped to 22.53 in Q3 2023. This downward trend may indicate a slowdown in the company's ability to convert working capital into revenue efficiently during those periods.

In Q4 2023, the working capital turnover ratio increased to 23.55, showing a slight improvement from the previous quarter but still lower than the peak value in Q1 2023. This suggests that Healthstream Inc was able to enhance its efficiency in utilizing working capital to generate sales compared to the immediate past quarters.

Overall, it is crucial for Healthstream Inc to continually monitor and manage its working capital turnover to ensure optimal utilization of resources and sustained growth in revenue generation. Further analysis and comparison with industry benchmarks can provide additional insights into the company's operational efficiency and financial performance.