Mednax Inc (MD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,012,920 | 1,994,640 | 1,972,020 | 1,911,190 | 1,733,950 |
| Total current assets | US$ in thousands | 639,607 | 483,454 | 334,750 | 740,849 | 1,549,350 |
| Total current liabilities | US$ in thousands | 434,110 | 388,946 | 374,225 | 394,118 | 423,157 |
| Working capital turnover | 9.80 | 21.11 | — | 5.51 | 1.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,012,920K ÷ ($639,607K – $434,110K)
= 9.80
The working capital turnover ratio for Mednax Inc has shown significant fluctuations over the years. In December 31, 2020, the ratio was 1.54, indicating that the company generated $1.54 in revenue for every dollar of working capital invested.
By the end of December 31, 2021, the ratio increased to 5.51, suggesting that the company became more efficient in utilizing its working capital to generate revenue. However, there is missing data for December 31, 2022, making it difficult to assess the trend for that year.
In December 31, 2023, the working capital turnover ratio surged to 21.11, demonstrating a substantial improvement in efficiency in utilizing working capital to generate revenue. This sharp increase could be a result of effective working capital management strategies implemented by the company during that period.
In the most recent year, December 31, 2024, the ratio declined to 9.80, indicating a decrease in the efficiency of working capital utilization compared to the previous year. It is essential for the company to closely monitor and analyze the factors influencing this decline to ensure optimal working capital management going forward.
Overall, the trend in Mednax Inc's working capital turnover ratio showcases both positive and negative fluctuations, reflecting changes in the company's efficiency in converting working capital into revenue over the years. Further analysis and monitoring of this ratio will be crucial for the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2024