National HealthCare Corporation (NHC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 775,790 | 743,581 | 698,729 | 683,307 | 660,050 |
| Payables | US$ in thousands | 37,563 | 33,589 | 40,083 | 37,566 | 34,011 |
| Payables turnover | 20.65 | 22.14 | 17.43 | 18.19 | 19.41 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $775,790K ÷ $37,563K
= 20.65
The payables turnover for National Healthcare Corp. has been consistently reported as 0.00 for the past five years (from 2019 to 2023). This indicates that the company is not effectively utilizing its accounts payable to support its operating activities during this period. A payables turnover ratio of 0.00 implies that the company is not paying its suppliers or vendors frequently enough or that there may be inefficiencies in managing its payables.
A low or zero payables turnover ratio may suggest that the company is holding onto its payables longer than necessary, which could strain relationships with suppliers or result in missed early payment discounts. It may also indicate potential liquidity issues or inefficiencies in the company's procurement and payment processes. Further investigation into the company's payables management practices, supplier relationships, and overall financial health is warranted to gain a better understanding of the underlying reasons for the consistently low payables turnover ratio.
Peer comparison
Dec 31, 2023