National HealthCare Corporation (NHC)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,307,382 | 1,238,946 | 1,187,233 | 1,169,157 | 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 |
| Total current assets | US$ in thousands | 424,408 | 445,726 | 447,871 | 417,586 | 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 |
| Total current liabilities | US$ in thousands | 234,797 | 247,946 | 216,935 | 206,429 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,307,382K ÷ ($424,408K – $234,797K)
= 6.90
The working capital turnover of National HealthCare Corporation has fluctuated over the period analyzed. It started at a relatively high level of 11.32 on March 31, 2020, indicating efficient utilization of working capital to generate sales. However, the ratio declined steadily through June and September 2020, reaching 5.86 by December 31, 2020.
The trend of decreasing working capital turnover continued into the first half of 2021, hitting a low of 5.15 on March 31, 2021, suggesting a potential inefficiency in working capital management. From September 2021, there was a gradual improvement in the ratio, demonstrating better utilization of working capital to generate revenue.
Although there were fluctuations in the ratio from 2022 to 2024, the overall trend showed some stability in the range of 6 to 8.22, indicating a moderate efficiency in the use of working capital during those periods.
It is important for National HealthCare Corporation to monitor and manage its working capital turnover effectively, ensuring that resources are optimized to support the company's operations and growth objectives.
Peer comparison
Dec 31, 2024