R1 RCM Inc (RCM)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,252,500 | 2,210,500 | 2,352,200 | 2,406,800 | |||
| Total current assets | US$ in thousands | 633,300 | 639,400 | 584,900 | 545,600 | 564,500 | 541,100 | 570,700 |
| Total current liabilities | US$ in thousands | 346,200 | 337,700 | 100,400 | 91,700 | 349,700 | 346,000 | 365,000 |
| Working capital turnover | 7.85 | 7.33 | 4.85 | 5.30 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,252,500K ÷ ($633,300K – $346,200K)
= 7.85
The working capital turnover of R1 RCM Inc. has been relatively stable over the past eight quarters, ranging from a low of 7.33 in Q3 2023 to a high of 12.76 in Q1 2022. This ratio measures how effectively the company is utilizing its working capital to generate revenue.
A higher working capital turnover ratio indicates that the company is efficiently using its working capital to support its operational activities and generate sales. R1 RCM Inc. has generally exhibited strong efficiency in this aspect, with most of the values consistently above 7.
However, the significant fluctuation from 7.48 in Q2 2022 to 12.76 in Q1 2022 may suggest variations in the company's working capital management practices or revenue generation during those periods. Further analysis would be required to understand the factors driving these fluctuations and their implications for the company's overall financial performance.
In conclusion, while R1 RCM Inc. has demonstrated strong working capital turnover ratios, closer examination of the underlying reasons for fluctuations in this metric would provide a more comprehensive insight into the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023