National HealthCare Corporation (NHC)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.48 | 3.48 | 4.48 | 4.69 | 4.11 |
| Days of sales outstanding (DSO) | days | 34.87 | 33.71 | 32.81 | 32.16 | 35.62 |
| Number of days of payables | days | 17.67 | 16.49 | 20.94 | 20.07 | 18.81 |
| Cash conversion cycle | days | 20.67 | 20.71 | 16.36 | 16.78 | 20.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.48 + 34.87 – 17.67
= 20.67
The cash conversion cycle of National Healthcare Corp. has shown stable performance over the past five years, with values ranging from 33.81 days to 35.62 days. This indicates the average time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. Overall, the company has been able to efficiently manage its working capital and operating cycle, maintaining a relatively consistent cash conversion cycle. This suggests that National Healthcare Corp. has been effectively balancing its inventory management, accounts payable, and accounts receivable processes to optimize its cash flow and liquidity position.
Peer comparison
Dec 31, 2023