Privia Health Group Inc (PRVA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 5.73 | 4.54 | 4.72 | 5.49 | 7.16 | 5.14 | 5.49 | 6.41 | 8.22 |
| Payables turnover | 182.63 | 44.69 | 48.74 | 29.27 | 22.68 | 178.41 | 101.91 | 64.57 | 94.20 |
| Working capital turnover | 5.31 | 5.23 | 5.11 | 5.13 | 4.72 | 4.60 | 4.59 | 3.91 | 3.77 |
Based on the activity ratios provided for Privia Health Group Inc, we can draw several important conclusions:
1. Receivables Turnover: The company's receivables turnover has been relatively stable over the past eight quarters, ranging from 4.52 to 7.16. This ratio indicates the efficiency of the company in collecting payments from its customers. A higher turnover ratio suggests that the company is collecting payments more quickly, which is generally favorable as it implies a shorter cash conversion cycle.
2. Payables Turnover: Privia Health Group Inc's payables turnover has also shown consistency over the quarters, with values ranging from 22.34 to 33.98. This ratio depicts how efficiently the company is managing its trade credit obligations. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which could signal good relationships with suppliers or strategic cash management.
3. Working Capital Turnover: The working capital turnover ratio has been steadily increasing from 3.92 in Q1 2022 to 5.28 in Q4 2023. This ratio reflects how effectively the company is utilizing its working capital to generate sales. An increasing trend in this ratio indicates improving efficiency in the utilization of working capital, which is a positive sign for the company's operational performance.
Overall, Privia Health Group Inc has demonstrated relatively stable and efficient activity ratios in managing its receivables, payables, and working capital turnover over the past eight quarters. These ratios indicate the company's effective management of its operational resources and relationships with customers and suppliers.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 63.70 | 80.47 | 77.26 | 66.51 | 50.99 | 70.98 | 66.45 | 56.95 | 44.40 |
| Number of days of payables | days | 2.00 | 8.17 | 7.49 | 12.47 | 16.09 | 2.05 | 3.58 | 5.65 | 3.87 |
Based on the provided data for Privia Health Group Inc's activity ratios, we can analyze the following:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is missing for all quarters across the specified period. Without this information, we are unable to assess the efficiency of Privia Health Group's inventory management.
2. Days of Sales Outstanding (DSO): The DSO indicates the average number of days it takes for a company to collect revenue after a sale is made. The trend for Privia Health Group Inc's DSO shows some fluctuation over the quarters, with Q3 2022 having the highest DSO of 80.81 days and Q4 2022 the lowest at 51.01 days. It suggests that the company improved its collection efficiency towards the end of 2022, but this deteriorated slightly in Q3 and Q4 2023.
3. Number of Days of Payables: This ratio reflects the average number of days it takes for a company to pay its suppliers. Privia Health Group Inc's days of payables show variability over the quarters, with Q2 2022 having the lowest at 10.74 days and Q1 2022 the highest at 16.34 days. The company maintained relatively low days of payables, indicating efficient management of its accounts payable.
Overall, Privia Health Group Inc's activity ratios demonstrate mixed performance in managing its receivables and payables. The company should focus on improving collection processes to reduce DSO and possibly optimize inventory management to have a complete picture of its operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 716.61 | 611.48 | 525.39 | 462.59 | 400.83 | 345.83 | 296.75 | 251.93 | 214.38 |
| Total asset turnover | 1.67 | 1.60 | 1.61 | 1.64 | 1.71 | 1.57 | 1.58 | 1.47 | 1.41 |
Long-term activity ratios provide insight into how efficiently a company is utilizing its long-term assets to generate revenue. In the case of Privia Health Group Inc, we can analyze two key long-term activity ratios - Fixed Asset Turnover and Total Asset Turnover.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how effectively the company is using its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
- Privia Health Group Inc's Fixed Asset Turnover has shown consistent improvement over the quarters, with a significant increase from Q1 2022 to Q4 2023.
- The trend suggests that the company is becoming more efficient in generating revenue from its investment in fixed assets, which is a positive indicator of operational efficiency and asset management.
2. Total Asset Turnover:
- The Total Asset Turnover ratio assesses the company's ability to generate sales from all its assets, both fixed and current.
- Privia Health Group Inc's Total Asset Turnover has fluctuated throughout the quarters, showing mixed performance.
- Although the ratio has not displayed a consistent upward trend, it has generally remained within a reasonable range, indicating a moderate level of efficiency in utilizing all assets to produce revenue.
Overall, the analysis of Privia Health Group Inc's long-term activity ratios suggests that the company has been improving its efficiency in generating sales from its fixed assets over time. However, there may be room for further optimization in terms of overall asset utilization to drive higher revenue generation.