National HealthCare Corporation (NHC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,307,380 | 1,141,540 | 1,085,740 | 1,074,300 | 1,028,220 |
| Total current assets | US$ in thousands | 424,408 | 406,235 | 353,932 | 426,638 | 456,755 |
| Total current liabilities | US$ in thousands | 234,797 | 214,476 | 197,887 | 263,201 | 281,228 |
| Working capital turnover | 6.90 | 5.95 | 6.96 | 6.57 | 5.86 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,307,380K ÷ ($424,408K – $234,797K)
= 6.90
National HealthCare Corporation's working capital turnover has shown a fluctuating trend over the past five years. The ratio increased from 5.86 in December 31, 2020, to 6.96 in December 31, 2022, indicating an improvement in the efficiency of utilizing working capital to generate revenue. However, there was a slight decline to 5.95 in December 31, 2023, before bouncing back to 6.90 in December 31, 2024.
On average, for the period under review, the company achieved a working capital turnover of approximately 6.26. This suggests that National HealthCare Corporation is effectively managing its working capital to support its operations and generate sales. A higher turnover ratio generally indicates efficient utilization of working capital to support revenue generation, which can be a positive indicator for the company's operational efficiency and financial performance. Overall, National HealthCare Corporation has shown relatively good performance in turning its working capital into sales over the past five years.
Peer comparison
Dec 31, 2024