National HealthCare Corporation (NHC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,141,540 | 1,085,740 | 1,074,300 | 1,028,220 | 996,383 |
| Total current assets | US$ in thousands | 406,235 | 353,932 | 426,638 | 456,755 | 341,053 |
| Total current liabilities | US$ in thousands | 214,476 | 197,887 | 263,201 | 281,228 | 194,763 |
| Working capital turnover | 5.95 | 6.96 | 6.57 | 5.86 | 6.81 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,141,540K ÷ ($406,235K – $214,476K)
= 5.95
The working capital turnover for National Healthcare Corp. has fluctuated over the past five years, ranging from 5.57 to 6.88. This ratio measures the efficiency of the company's working capital management in generating revenue. A higher value indicates that the company is effectively utilizing its working capital to generate sales.
In 2023, the working capital turnover decreased to 5.92 from 6.88 in 2022. This suggests that National Healthcare Corp. may have experienced a reduction in its ability to generate sales relative to its working capital investment. It is important for the company to analyze the reasons behind this decline and take appropriate measures to improve its working capital efficiency.
Comparing the current ratio to previous years, National Healthcare Corp. has seen fluctuations in its working capital turnover. It would be beneficial for the company to conduct a detailed analysis to understand the factors contributing to these variations and implement strategies to maintain or increase its working capital turnover in the future.
Peer comparison
Dec 31, 2023