National HealthCare Corporation (NHC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 879,151 | 830,263 | 798,421 | 792,153 | 775,790 | 750,463 | 741,504 | 740,868 | 743,581 | 756,829 | 742,223 | 724,307 | 698,729 | 678,669 | 676,807 | 683,001 | 683,307 | 680,116 | 677,091 | 663,967 |
| Inventory | US$ in thousands | 9,039 | 7,840 | 6,632 | 6,763 | 7,386 | 7,373 | 6,995 | 6,946 | 7,088 | 7,298 | 7,363 | 8,586 | 8,582 | 8,696 | 7,939 | 8,117 | 8,781 | 7,188 | 7,200 | 7,904 |
| Inventory turnover | 97.26 | 105.90 | 120.39 | 117.13 | 105.04 | 101.79 | 106.00 | 106.66 | 104.91 | 103.70 | 100.80 | 84.36 | 81.42 | 78.04 | 85.25 | 84.14 | 77.82 | 94.62 | 94.04 | 84.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $879,151K ÷ $9,039K
= 97.26
The inventory turnover ratio for National HealthCare Corporation has shown a fluctuating trend over the past few years. The ratio was 84.00 as of March 31, 2020, and increased gradually to peak at 120.39 on June 30, 2024. This indicates that the company is selling through its inventory at a faster rate, which is generally a positive sign of efficient inventory management.
However, it is essential to note that the ratio dipped to 77.82 on December 31, 2020, which may suggest potential inefficiencies in managing inventory levels during that period. Subsequently, the ratio improved, reaching 117.13 on March 31, 2024, indicating a potentially healthier balance between inventory levels and sales demand.
Overall, the increasing trend in inventory turnover indicates that National HealthCare Corporation is improving its efficiency in managing and selling inventory, potentially leading to improved liquidity and profitability. The company should continue monitoring and optimizing its inventory turnover to ensure continued operational effectiveness.
Peer comparison
Dec 31, 2024
Dec 31, 2024