National HealthCare Corporation (NHC)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,141,544 | 1,105,183 | 1,087,541 | 1,076,318 | 1,085,738 | 1,104,619 | 1,110,513 | 1,102,312 | 1,074,302 | 1,050,693 | 1,024,582 | 1,023,066 | 1,028,217 | 1,022,272 | 1,018,713 | 1,004,222 | 996,383 | 991,423 | 990,682 | 985,673 |
| Receivables | US$ in thousands | 109,048 | 102,603 | 101,260 | 103,134 | 100,288 | 99,003 | 100,415 | 101,748 | 96,577 | 99,918 | 98,693 | 103,096 | 90,598 | 85,848 | 87,248 | 102,196 | 97,230 | 95,826 | 98,879 | 102,036 |
| Receivables turnover | 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 | 10.25 | 10.35 | 10.02 | 9.66 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,141,544K ÷ $109,048K
= 10.47
The receivables turnover for National Healthcare Corp. has been relatively stable over the past eight quarters, ranging between 10.33 and 10.89. This indicates that the company is efficiently collecting its accounts receivable on average every 10 to 11 days. A higher receivables turnover ratio is generally preferred as it suggests that the company is effective in converting its credit sales into cash quickly.
The consistent numbers also suggest that the company has a good system in place for managing and collecting its receivables, which is crucial for maintaining cash flow and overall financial health. However, it would be beneficial for the company to monitor this ratio over time and compare it to industry benchmarks to ensure that they are not overly extending credit terms to customers, which could lead to cash flow issues in the future.
Peer comparison
Dec 31, 2023