Mednax Inc (MD)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,012,919 | 2,006,998 | 2,002,452 | 1,998,733 | 1,994,640 | 2,012,041 | 1,995,344 | 1,980,800 | 1,972,021 | 1,956,707 | 1,959,741 | 1,946,667 | 1,911,191 | 1,829,291 | 1,796,977 | 1,833,221 | 2,232,386 | 2,721,131 | 3,149,171 | 3,508,277 |
| Total current assets | US$ in thousands | 639,607 | 528,215 | 429,212 | 426,523 | 483,454 | 420,524 | 397,767 | 311,883 | 334,750 | 423,707 | 365,915 | 439,777 | 740,849 | 788,029 | 752,313 | 665,399 | 1,549,350 | 1,651,160 | 688,329 | 940,896 |
| Total current liabilities | US$ in thousands | 434,110 | 373,080 | 310,156 | 207,035 | 388,946 | 350,444 | 320,318 | 226,675 | 374,225 | 351,694 | 287,463 | 269,727 | 394,118 | 397,564 | 351,105 | 326,958 | 423,157 | 488,364 | 383,933 | 346,400 |
| Working capital turnover | 9.80 | 12.94 | 16.82 | 9.11 | 21.11 | 28.71 | 25.76 | 23.25 | — | 27.17 | 24.98 | 11.45 | 5.51 | 4.68 | 4.48 | 5.42 | 1.98 | 2.34 | 10.35 | 5.90 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,012,919K ÷ ($639,607K – $434,110K)
= 9.80
The working capital turnover of Mednax Inc shows fluctuations over the given periods, indicating the efficiency of the company in generating sales revenue from its working capital.
In the beginning, the working capital turnover was 5.90 on March 31, 2020, suggesting that the company generated $5.90 in sales for every $1 of working capital invested. The ratio improved significantly to 10.35 on June 30, 2020, indicating a more efficient utilization of working capital.
However, the efficiency dropped in the following quarters, reaching a low of 1.98 on December 31, 2020. This suggests that the company struggled to convert its working capital into sales during that period.
The ratio showed some recovery in the subsequent periods, with fluctuations seen till December 31, 2023, where the ratio was at 21.11. This signifies improvements in the company's ability to generate sales revenue from its working capital.
The ratio then declined in the following periods and stood at 9.80 on December 31, 2024. This indicates a dip in the efficiency of the company in utilizing its working capital to generate sales.
Overall, fluctuations in the working capital turnover ratio suggest varying levels of efficiency in utilizing working capital to drive sales revenue for Mednax Inc over the given periods. It would be essential for the company to analyze the reasons behind these fluctuations to maintain and improve its operational efficiency in the future.
Peer comparison
Dec 31, 2024