Molina Healthcare Inc (MOH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,072,000 | 31,974,000 | 27,771,000 | 19,423,000 | 16,829,000 |
| Receivables | US$ in thousands | 3,104,000 | 2,302,000 | 2,177,000 | 1,672,000 | 1,406,000 |
| Receivables turnover | 10.98 | 13.89 | 12.76 | 11.62 | 11.97 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $34,072,000K ÷ $3,104,000K
= 10.98
The receivables turnover ratio measures how efficiently Molina Healthcare Inc is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting payments more quickly, which is generally favorable.
Looking at the trend over the past five years, we observe fluctuations in the receivables turnover ratio for Molina Healthcare Inc. In 2023, the ratio stands at 10.98, representing a decrease from the previous year's ratio of 13.89. Despite this decrease, the current ratio still indicates that Molina Healthcare Inc is collecting receivables at a relatively efficient pace.
Comparing the 2023 ratio to those of the previous years, we see that the company's receivables turnover has varied over time. The decrease in 2023 compared to 2022 could be a cause for further investigation, although it is within a reasonable range when considering the historical performance.
In conclusion, a receivables turnover ratio of 10.98 for 2023 suggests that Molina Healthcare Inc is managing its accounts receivable effectively, but it's important for the company to monitor any significant changes in this ratio to ensure continued efficiency in collections.
Peer comparison
Dec 31, 2023