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