Community Health Systems(Cyh) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for CYH compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', CYH's receivables turnover was 5.49, showing efficiency in collecting outstanding receivables. Industry average for Hospital/Nursing Management in '2021' stood at 6.33.
• In '2022', CYH's receivables turnover was 5.39, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Hospital/Nursing Management in '2022' stood at 6.42. Industry average increased by 0.09 compared to previous year.
• In '2023', CYH's receivables turnover was 5.24, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Hospital/Nursing Management in '2023' stood at 6.56. Industry average increased by 0.15 compared to previous year.
• In '2024', CYH's receivables turnover was 5.04, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Hospital/Nursing Management in '2024' stood at 6.69. Industry average increased by 0.12 compared to previous year.
Overall, CYH's receivables turnover has consistently declined during the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.