National Healthcare(Nhc) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for NHC compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
• In '2021', NHC's inventory turnover was 77.61, reflecting efficiency in managing inventory stock. Industry average for Hospital/Nursing Management in '2021' stood at 6.78.
• In '2022', NHC's inventory turnover was 87.58, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2022' stood at 7.19. Industry average increased by 0.41 compared to previous year.
• In '2023', NHC's inventory turnover was 98.43, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2023' stood at 7.51. Industry average increased by 0.31 compared to previous year.
• In '2024', NHC's inventory turnover was 98.74, reflecting efficiency in managing inventory stock. The increase since '2023' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2024' stood at 7.58. Industry average increased by 0.07 compared to previous year.
Overall, NHC's inventory turnover has steadily improved over the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.