Privia Health Group Inc (PRVA)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,666,109 | 1,588,009 | 1,511,017 | 1,431,722 | 1,357,202 | 1,266,774 | 1,174,822 | 1,065,403 | 965,150 | |||
| Total current assets | US$ in thousands | 700,804 | 697,668 | 654,000 | 588,777 | 551,962 | 579,646 | 521,270 | 492,558 | 446,676 | 469,424 | 436,450 | 204,646 |
| Total current liabilities | US$ in thousands | 386,952 | 394,192 | 358,444 | 309,689 | 264,274 | 304,529 | 265,140 | 220,353 | 190,461 | 187,242 | 167,318 | 157,524 |
| Working capital turnover | 5.31 | 5.23 | 5.11 | 5.13 | 4.72 | 4.60 | 4.59 | 3.91 | 3.77 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,666,109K ÷ ($700,804K – $386,952K)
= 5.31
The working capital turnover ratio for Privia Health Group Inc has been consistently above 4 over the past eight quarters, indicating the company efficiently utilizes its working capital to generate sales. The ratio has shown a generally increasing trend from 4.59 in Q2 2022 to 5.28 in Q4 2023, reaching its highest point in the most recent quarter. This suggests that the company has been able to manage its working capital effectively to support revenue growth.
A working capital turnover ratio above 4 signifies that Privia Health Group Inc is able to generate sales revenue more than four times the amount of its working capital investment. This reflects a strong liquidity position and operational efficiency within the company. The improvements in the ratio over time indicate that the company has been able to optimize its working capital management strategies, potentially through better inventory control, accounts receivable collection, and accounts payable management.
Overall, the consistent increase in the working capital turnover ratio for Privia Health Group Inc demonstrates effective working capital management practices and efficient utilization of resources to drive revenue generation. This efficiency in working capital turnover is a positive indicator of the company's financial health and operational performance.
Peer comparison
Dec 31, 2023