National HealthCare Corporation (NHC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 879,151 | 775,790 | 743,581 | 698,729 | 683,307 |
| Payables | US$ in thousands | 40,844 | 37,563 | 33,589 | 40,083 | 37,566 |
| Payables turnover | 21.52 | 20.65 | 22.14 | 17.43 | 18.19 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $879,151K ÷ $40,844K
= 21.52
Based on the data provided, the payables turnover for National HealthCare Corporation has shown fluctuations over the years. The payables turnover was 18.19 in December 31, 2020, decreased slightly to 17.43 in December 31, 2021, then increased to 22.14 in December 31, 2022. It dipped to 20.65 by December 31, 2023, and increased again to 21.52 by December 31, 2024.
A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be beneficial in terms of managing working capital. A lower ratio, on the other hand, may indicate that the company is taking longer to pay its bills, which could impact supplier relationships.
Overall, National HealthCare Corporation's payables turnover has shown some variability but has generally remained within a reasonable range. It is important for the company to monitor this ratio continuously to ensure efficient management of its payables and maintain healthy relationships with suppliers.
Peer comparison
Dec 31, 2024