Molina Healthcare Inc (MOH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 12.32 | 10.98 | 13.89 | 12.76 | 11.62 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 8.34 | 7.79 | 9.90 | 9.20 | 6.67 |
Molina Healthcare Inc's activity ratios show how efficiently the company manages its day-to-day operations related to inventory, receivables, payables, and working capital.
1. Inventory Turnover: The data indicates that there is no information available for the inventory turnover ratio for the years 2020 through 2024. This could suggest that Molina Healthcare Inc operates with a low level of inventory turnover or that inventory is not a significant factor in the company's operations.
2. Receivables Turnover: The receivables turnover ratio measures how effectively Molina Healthcare Inc collects payments from customers. The trend shows an increasing pattern from 11.62 in 2020 to 12.32 in 2024. This indicates that the company is collecting receivables more efficiently, possibly through better credit policies or improved collection processes.
3. Payables Turnover: There is no information available for the payables turnover ratio for the years 2020 through 2024. This may suggest that Molina Healthcare Inc manages its payables in a way that does not result in a high turnover rate or that payables are not a significant aspect of the company's operations.
4. Working Capital Turnover: The working capital turnover ratio reflects how effectively Molina Healthcare Inc utilizes its working capital to generate revenue. The ratios indicate a fluctuating trend, from 6.67 in 2020 to 9.20 in 2021, and then gradually decreasing to 8.34 in 2024. This suggests variations in the efficiency of working capital utilization over the years.
Overall, the analysis of these activity ratios provides insight into Molina Healthcare Inc's operational efficiency and management of key aspects of its business, such as inventory, receivables, payables, and working capital.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.62 | 33.25 | 26.28 | 28.61 | 31.42 |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) ratio for Molina Healthcare Inc is not provided in the data. This ratio measures the average number of days a company holds its inventory before selling it and is indicative of how efficiently the company manages its inventory.
The Days of Sales Outstanding (DSO) ratio, on the other hand, shows a declining trend from 31.42 days as of December 31, 2020, to 29.62 days as of December 31, 2024. This indicates that Molina Healthcare Inc has been improving its collection process over the years, reducing the average number of days it takes to collect revenue from sales.
Lastly, the Number of Days of Payables ratio is also not available in the data. This ratio reflects how long it takes for a company to pay its suppliers and is essential in assessing the company's liquidity and supplier relationships.
Overall, based on the provided DSO data, Molina Healthcare Inc has shown efficiency in collecting revenue from its sales over the years, with a decreasing trend in the average number of days outstanding. However, without the DOH and Number of Days of Payables ratios, a comprehensive analysis of the company's activity and efficiency in managing inventory and payables cannot be fully assessed.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 39.50 | 36.56 | 36.25 | 33.78 | 25.83 |
| Total asset turnover | 2.60 | 2.29 | 2.60 | 2.27 | 2.04 |
Molina Healthcare Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate sales revenue. The fixed asset turnover ratio has shown a consistent improving trend from 25.83 in 2020 to 39.50 in 2024, signifying that the company is able to generate more sales revenue per dollar invested in fixed assets over the years. This indicates that Molina Healthcare has been effectively utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has fluctuated over the years, with peaks in 2022 and 2024 at 2.60, and a low point in 2023 at 2.29. This ratio measures the efficiency of the company in generating sales revenue in relation to its total assets. The fluctuation in this ratio may suggest varying levels of asset utilization or changes in the sales volume relative to the value of total assets held by the company.
Overall, the increasing trend in the fixed asset turnover ratio reflects the company's ability to efficiently use its fixed assets to drive revenue growth, while the fluctuating total asset turnover ratio indicates potential shifts in the overall efficiency of asset utilization and revenue generation over the years.