National HealthCare Corporation (NHC)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 9.62 9.58 10.78 9.27 10.47 10.77 10.74 10.44 10.83 11.16 11.06 10.83 11.12 10.52 10.38 9.92 11.35 11.91 11.68 9.83
Payables turnover 21.52 19.99 19.96 19.47 20.65 23.41 24.57 25.01 22.14 21.66 16.81 16.78 17.43 13.59 17.28 21.55 18.19 19.14 18.67 19.60
Working capital turnover 6.90 6.26 5.14 5.54 5.95 6.21 6.36 6.96 6.96 8.22 6.52 6.58 6.57 6.29 5.31 5.15 5.86 6.29 7.95 11.32

National HealthCare Corporation's activity ratios show the efficiency with which the company is managing its resources.

1. Inventory Turnover: This ratio indicates how many times National HealthCare Corporation's inventory is sold and replaced during a specific period. The trend of increasing inventory turnover from March 31, 2020, to December 31, 2024, indicates that the company is efficiently managing its inventory levels.

2. Receivables Turnover: This ratio shows how many times National HealthCare Corporation collects its accounts receivable in a given period. The fluctuating trend in receivables turnover suggests some variability in the company's collection efficiency over the analyzed period.

3. Payables Turnover: Payables turnover measures how quickly National HealthCare Corporation pays its suppliers. The decreasing trend in payables turnover from March 31, 2020, to December 31, 2024, indicates that the company took longer to pay its suppliers over time.

4. Working Capital Turnover: This ratio evaluates how effectively National HealthCare Corporation utilizes its working capital to generate sales. The variations in working capital turnover suggest changes in the company's ability to efficiently convert working capital into revenue over the analyzed period.

Overall, the analysis of National HealthCare Corporation's activity ratios provides insights into the company's operational efficiency and effectiveness in managing its resources to drive business performance.

Average number of days

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
Days of inventory on hand (DOH) days 3.75 3.45 3.03 3.12 3.48 3.59 3.44 3.42 3.48 3.52 3.62 4.33 4.48 4.68 4.28 4.34 4.69 3.86 3.88 4.35
Days of sales outstanding (DSO) days 37.92 38.11 33.85 39.38 34.87 33.89 33.98 34.97 33.71 32.71 33.00 33.69 32.81 34.71 35.16 36.78 32.16 30.65 31.26 37.14
Number of days of payables days 16.96 18.26 18.29 18.75 17.67 15.59 14.86 14.59 16.49 16.85 21.72 21.75 20.94 26.86 21.13 16.93 20.07 19.07 19.55 18.63

Based on the provided data for National HealthCare Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- National HealthCare Corporation's DOH has fluctuated over the periods but generally decreased from 4.35 days on March 31, 2020, to 3.75 days on December 31, 2024. A lower DOH indicates that the company is managing its inventory efficiently and selling its products quickly.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payments from its customers. National HealthCare Corporation's DSO ranged from 31.26 days on June 30, 2020, to 39.38 days on March 31, 2024. A lower DSO is favorable as it signifies quicker cash conversion from sales.

3. Number of Days of Payables:
- This ratio indicates the average number of days the company takes to pay its suppliers. National HealthCare Corporation's payables days varied from 14.59 days on March 31, 2023, to 26.86 days on September 30, 2021. A higher payables period suggests the company is taking longer to settle its accounts payable.

Overall, the trend in these activity ratios can provide insights into National HealthCare Corporation's operational efficiency, cash management, and relationships with suppliers and customers.

Long-term

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
Fixed asset turnover 1.91 1.80 2.44 2.39 2.31 2.22 2.17 2.14 2.14 2.16 2.15 2.12 2.06 2.01 1.97 1.99 1.98 1.93 1.90 1.86
Total asset turnover 0.86 0.79 0.89 0.89 0.87 0.86 0.85 0.85 0.85 0.85 0.82 0.81 0.77 0.74 0.70 0.75 0.75 0.76 0.76 0.80

The analysis of National HealthCare Corporation's long-term activity ratios based on the provided data reveals the following insights:

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently the company generates revenue from its fixed assets.
- National HealthCare Corporation's Fixed Asset Turnover has been consistently increasing from 1.86 in March 2020 to 2.31 in December 2023, indicating improving efficiency in utilizing its fixed assets to generate sales.
- However, there was a slight decline in Fixed Asset Turnover in the last quarter of 2024, dropping to 1.91. This decrease may suggest a potential decrease in the efficiency of utilizing fixed assets to generate revenue, warranting further investigation.

2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how effectively the company utilizes all its assets to generate revenue.
- National HealthCare Corporation's Total Asset Turnover fluctuated over the period, with a general increasing trend from 0.80 in March 2020 to 0.86 in December 2024.
- The company's Total Asset Turnover showed an improvement over time, reaching its peak in the last quarter of 2024. This suggests that the company has been more efficient in using all its assets to generate sales.

In conclusion, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios demonstrates National HealthCare Corporation's improving efficiency in utilizing its assets to generate revenue over the long term. However, the slight decline in Fixed Asset Turnover in the last quarter of 2024 may warrant closer monitoring to ensure sustained efficiency in asset utilization.