National HealthCare Corporation (NHC)
Working capital 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 |
| Total current assets | US$ in thousands | 406,235 | 382,578 | 368,734 | 337,903 | 353,932 | 344,529 | 394,781 | 384,020 | 426,638 | 424,829 | 465,907 | 464,618 | 456,755 | 422,228 | 390,204 | 306,682 | 341,053 | 351,190 | 321,577 | 327,113 |
| Total current liabilities | US$ in thousands | 214,476 | 204,694 | 197,798 | 183,210 | 197,887 | 210,156 | 224,365 | 216,487 | 263,201 | 257,670 | 273,012 | 265,846 | 281,228 | 259,673 | 262,142 | 217,982 | 194,763 | 181,088 | 171,687 | 169,962 |
| Working capital turnover | 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 | 6.81 | 5.83 | 6.61 | 6.27 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,141,544K ÷ ($406,235K – $214,476K)
= 5.95
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate revenue. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio indicates better efficiency in utilizing working capital.
Looking at the data provided for National Healthcare Corp., we can see that the working capital turnover has fluctuated over the quarters. The company's working capital turnover ranged from 5.92 to 8.03 over the past eight quarters.
In Q4 2023, the working capital turnover was 5.92, showing a decrease from the previous quarter. Despite this decrease, the ratio indicates that the company generated $5.92 in revenue for every dollar of working capital during that quarter.
Overall, the company has generally maintained a relatively high working capital turnover ratio, which suggests that National Healthcare Corp. effectively utilizes its working capital to generate sales revenue. However, it is important to closely monitor these fluctuations to ensure that the efficiency of working capital utilization is sustainable in the long term.
Peer comparison
Dec 31, 2023