Privia Health Group Inc (PRVA)

Cash conversion cycle

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
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
Cash conversion cycle days 61.70 72.30 69.77 54.04 34.90 68.94 62.87 51.30 40.52

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 63.70 – 2.00
= 61.70

The cash conversion cycle of Privia Health Group Inc has shown fluctuations over the past eight quarters, with Q3 2023 recording the highest cycle of 67.00 days and Q4 2022 the lowest at 36.63 days. Overall, the company's cash conversion cycle appears to have increased in recent quarters, indicating potential challenges in efficiently converting its investments in inventory and other resources into cash.

A longer cash conversion cycle suggests that the company is taking more time to convert its investments into sales and ultimately into cash. This could be due to various factors such as slow inventory turnover, extended credit terms with customers, or delays in collecting receivables. On the other hand, a shorter cash conversion cycle is generally favorable as it indicates that the company is able to quickly convert its investments into cash, improving liquidity and financial health.

It is important for Privia Health Group Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital management. Efficiency in managing the cash conversion cycle can help improve the company's liquidity position, reduce financing costs, and enhance overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Privia Health Group Inc
PRVA
61.70
US Physicalrapy Inc
USPH
28.36