Molina Healthcare Inc (MOH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 10.98 | 13.89 | 12.76 | 11.62 | 11.97 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 7.79 | 9.90 | 9.20 | 6.67 | 6.24 |
Inventory turnover is not provided in the table, indicating that there is insufficient information to analyze how efficiently Molina Healthcare Inc is managing its inventory.
The receivables turnover ratio shows how many times a company collects its average accounts receivable balance during a period. Molina Healthcare Inc's receivables turnover has been fluctuating over the years, ranging from a high of 13.89 in 2022 to a low of 10.98 in 2023. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Payables turnover is not provided in the table, preventing an assessment of how effectively Molina Healthcare Inc is managing its accounts payable.
The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales. Molina Healthcare Inc's working capital turnover has been increasing over the years, suggesting that the company has been able to generate more sales relative to its working capital. This improvement indicates a more efficient use of working capital to support the company's operations.
Overall, based on the available data, Molina Healthcare Inc appears to be managing its receivables efficiently and improving its utilization of working capital to drive sales. However, further information on inventory and payables turnover would provide a more comprehensive analysis of the company's activity ratios.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.25 | 26.28 | 28.61 | 31.42 | 30.49 |
| Number of days of payables | days | — | — | — | — | — |
The Days of Sales Outstanding (DSO) ratio for Molina Healthcare Inc has shown fluctuations over the past five years, ranging from 26.28 days in 2022 to 33.25 days in 2023. A lower DSO indicates that the company is collecting its accounts receivable more efficiently. However, the increase in DSO from 2022 to 2023 may suggest potential issues with collecting receivables or changes in the company's credit policies.
Unfortunately, the data provided does not include information on the Days of Inventory on Hand or the Number of Days of Payables for Molina Healthcare Inc. These ratios are important in assessing the efficiency of inventory management and payment terms with suppliers, respectively.
In conclusion, while the Days of Sales Outstanding ratio provides some insights into the company's accounts receivable management, a holistic analysis considering all relevant activity ratios would be needed to fully evaluate Molina Healthcare Inc's operational efficiency and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 36.56 | 36.25 | 33.78 | 25.83 | 24.50 |
| Total asset turnover | 2.29 | 2.60 | 2.27 | 2.04 | 2.48 |
The fixed asset turnover ratio for Molina Healthcare Inc has shown a consistent upward trend over the past five years, indicating that the company is generating significantly more revenue relative to its investment in fixed assets. The ratio increased from 49.68 in 2020 to 126.19 in 2023, which reflects the company's improved efficiency in utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio fluctuated over the same period, reaching its peak of 2.60 in 2022 before decreasing to 2.29 in 2023. Despite the fluctuations, the overall trend shows that Molina Healthcare Inc has been effectively using its total assets to generate revenue, albeit at a slightly lower rate in 2023 compared to the previous year.
Overall, both the fixed asset turnover and total asset turnover ratios indicate that Molina Healthcare Inc has been efficient in utilizing its assets to generate revenue, with the fixed asset turnover ratio showing a more pronounced improvement over the years.