Privia Health Group Inc (PRVA)

Short-term

Turnover ratios

The activity ratios for Privia Health Group Inc provide insights into the efficiency of the company's operations and management of its assets and liabilities.

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company is collecting payments from its customers.
- The decreasing trend from 2021 to 2023 indicates that the company took longer to collect payments from its customers each year.
- A higher ratio in 2021 (8.23) suggests better efficiency in collecting receivables compared to 2022 (7.16) and 2023 (5.70).

2. Payables Turnover:
- The payables turnover ratio measures how quickly the company is paying its suppliers.
- Privia Health Group Inc showed a decreasing trend in paying its suppliers from 2021 to 2023, with the ratio dropping significantly from 58.77 in 2021 to 25.08 in 2023.
- A lower ratio indicates that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and cash management.

3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue.
- The increasing trend from 2019 to 2023 indicates that the company was able to generate more revenue with each dollar of working capital over the period.
- A higher ratio suggests efficient management of working capital and effective utilization of resources to drive revenue growth.

In summary, Privia Health Group Inc should focus on improving its receivables turnover and payables turnover ratios to enhance efficiency in managing its cash flow and working capital.

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Average number of days

1. Days of Inventory on Hand (DOH):
It seems that the data for Days of Inventory on Hand at Privia Health Group Inc is not available for the years 2021, 2022, and 2023. This ratio indicates the number of days a company takes to sell its inventory. Without this information, we cannot assess how efficiently Privia Health Group manages its inventory levels.

2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding for Privia Health Group Inc show an increasing trend over the three years, from 44.35 days in 2021 to 64.02 days in 2023. This suggests that the company is taking longer to collect payments from its customers. A higher DSO can indicate issues with accounts receivable management, potentially impacting the company's cash flow and liquidity.

3. Number of Days of Payables:
The Number of Days of Payables for Privia Health Group Inc remained relatively stable over the three years, ranging from 6.21 days in 2021 to 14.55 days in 2023. A higher number of days of payables can indicate that the company is taking longer to pay its suppliers, which may impact supplier relationships but can also provide some short-term liquidity benefits.

In conclusion, while the data for Days of Inventory on Hand is missing, the increasing trend in Days of Sales Outstanding suggests potential issues with accounts receivable management at Privia Health Group Inc. On the other hand, the stable Days of Payables indicate a consistent approach to managing supplier payments. It may be beneficial for the company to focus on improving its collection processes to reduce DSO and enhance overall liquidity management.

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Long-term

The long-term activity ratios of Privia Health Group Inc indicate the company's efficiency in utilizing its fixed assets and total assets to generate revenue.

1. Fixed asset turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales.
- The significant increase in the fixed asset turnover ratio from 214.62 in 2021 to 713.01 in 2023 indicates improved efficiency in utilizing fixed assets to generate revenue.
- This substantial increase suggests that the company has managed to increase its sales relative to its investment in fixed assets over the years, which could be attributed to better asset utilization or increased revenue generation from fixed assets.

2. Total asset turnover:
- The total asset turnover ratio reflects the company's ability to generate sales from all its assets collectively.
- The slight decrease in total asset turnover from 1.41 in 2021 to 1.66 in 2023 may raise a concern as it indicates that the company's efficiency in utilizing total assets to generate revenue has slightly declined.
- It is important for the company to closely monitor this ratio and look for ways to improve asset utilization to ensure optimal revenue generation.

Overall, the significant improvement in fixed asset turnover coupled with a modest decline in total asset turnover suggest that Privia Health Group Inc has been focusing on optimizing its fixed assets efficiency, although it may need to pay attention to overall asset utilization in order to sustain long-term growth and profitability.