Privia Health Group Inc (PRVA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,666,110 | 1,357,200 | 965,150 |
| Receivables | US$ in thousands | 290,768 | 189,604 | 117,402 |
| Receivables turnover | 5.73 | 7.16 | 8.22 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,666,110K ÷ $290,768K
= 5.73
The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales. A higher receivables turnover ratio signifies that the company is collecting payments more quickly, which is generally favorable.
In the case of Privia Health Group Inc, the receivables turnover ratio has decreased from 8.23 in 2021 to 5.70 in 2023. This suggests a decrease in the efficiency of the company in collecting payments from its customers over this period.
A declining receivables turnover ratio could indicate issues with the company's credit policies, customer payment patterns, or the quality of its accounts receivable. It may also suggest potential liquidity concerns if customers are taking longer to pay their bills.
Further analysis is recommended to determine the underlying reasons for the decreasing trend in the receivables turnover ratio and to assess the impact on Privia Health Group Inc's overall financial performance and cash flow management.
Peer comparison
Dec 31, 2023