Mednax Inc (MD)

Short-term

Turnover ratios

The activity ratios of Mednax Inc provide insight into how efficiently the company is managing its resources and operating cycle.

1. Inventory Turnover: This ratio indicates how many times the company's inventory is sold and replaced within a specific period. The trend in Mednax Inc's inventory turnover shows fluctuations over the years, with significant variations between quarters. There was a sharp decline in the inventory turnover rate in September 2020, but it recovered in subsequent quarters, showing improvement in managing inventory levels. However, there are missing data points, which may affect the overall interpretation of this ratio.

2. Receivables Turnover: The receivables turnover ratio measures how quickly a company collects cash from its credit sales. In the case of Mednax Inc, data is missing for all periods, making it impossible to analyze the efficiency of the company in collecting payment from its customers.

3. Payables Turnover: This ratio indicates how efficiently a company pays its suppliers. Unfortunately, there is no data provided for payables turnover, so it is challenging to assess the company's payment practices.

4. Working Capital Turnover: This ratio assesses how effectively a company utilizes its working capital to generate sales. Mednax Inc's working capital turnover shows fluctuations over the years, with varying levels of efficiency in utilizing its working capital to generate revenue. A higher turnover ratio generally indicates better efficiency in utilizing working capital.

In conclusion, while the information provided offers some insights into the activity ratios of Mednax Inc, the missing data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity efficiency. It is essential for the company to maintain accurate and complete financial data to evaluate and improve its operational efficiency.

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Average number of days

The activity ratios for Mednax Inc provide insights into how efficiently the company is managing its inventory and accounts receivable.

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days a company's inventory can be held before being sold.
- In this case, the DOH fluctuated significantly over the periods provided, ranging from as low as 2.19 days to as high as 170.88 days.
- A lower DOH indicates efficient inventory management, while a higher DOH suggests inventory optimization or potential issues with inventory turnover.

2. Days of Sales Outstanding (DSO):
- The DSO ratio evaluates how long it takes for a company to collect cash from its credit sales.
- The data shows that DSO was not provided, indicating that specific insights into Mednax's accounts receivable collection efficiency are not available.
- Ideally, a lower DSO indicates quicker collection of accounts receivable and better cash flow management.

3. Number of Days of Payables:
- The number of days of payables measures how long a company takes to pay its suppliers.
- The data does not provide information on the number of days of payables for Mednax, limiting the analysis of the company's payment terms and working capital management.
- A longer payable period can indicate better cash flow management, provided it does not strain relationships with suppliers.

Overall, while the DOH data suggests fluctuations in inventory management efficiency for Mednax, additional information on DSO and payables would be needed for a more comprehensive analysis of the company's overall activity and liquidity management.

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Long-term

Over the period analyzed, Mednax Inc's fixed asset turnover ratio has shown some fluctuations but generally remained stable, ranging between 13.28 and 35.00. This ratio indicates the company's efficiency in generating revenue from its fixed assets, with a higher ratio typically indicating better utilization of these assets.

On the other hand, the total asset turnover ratio, which measures how efficiently the company generates sales from all its assets, has also varied over time. It started at 0.67 and reached a peak of 1.00 by June 30, 2024. A higher total asset turnover ratio suggests that the company is generating more sales relative to its total assets.

Overall, both ratios provide insights into how well Mednax Inc is utilizing its assets to generate revenue. Efforts to improve efficiency in asset utilization could lead to increased profitability and overall financial performance.