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.