software and hardware and four to seven years for furniture and other office equipment. Leasehold improvements are depreciated over the shorter of the estimated life of the asset or life of the lease, or two to fifteen years (10-K). Accounts Receivable In 2009, the net accounts receivable account was $100,833,000. In 2010, the account decreased to $89,108,000, and then increased in 2011 to $97,459,000. It rose again in 2012 to $108,337,000. However, the account decreased in 2013 to $89,484,000 (10-K). The highest value in the net accounts receivable account occurred in 2012, and the increase can be attributed to a higher operating income than in other years with $28,895,000, compared to just $1,902,000 in 2013 and a loss of $129,114,000 in 2011 in operating income (10-K). In dividing receivables by total assets to account for general growth over time, the company slowed in growth from 2009 with 11.43 percent to 2010 with 10.34 percent. It then increased in 2011 to 13.75 percent and again in 2012 to 14.48 percent. However, general growth decreased in 2013 down to 11.95 percent. Revenues have been decreasing slowly since 2010; however, the year-over-year rate has remained a constant 0.98 for the past two years. Receivables have been fluctuating between increases in 2011 and 2012 and decreases in 2010 and 2013 (10-K). Year-Over-Year Change Years Receivables Revenues 2013/2012 0.83 0.98 2012/2011 1.09 0.98 2011/2010 1.11 0.96 2010/2009 0.83 1.00 Accounts Receivable Turnover Because Healthways has an accounts receivable turnover ratio of 7.41, the higher ratio means that the company collected its average receivables 7.41 times during the
software and hardware and four to seven years for furniture and other office equipment. Leasehold improvements are depreciated over the shorter of the estimated life of the asset or life of the lease, or two to fifteen years (10-K). Accounts Receivable In 2009, the net accounts receivable account was $100,833,000. In 2010, the account decreased to $89,108,000, and then increased in 2011 to $97,459,000. It rose again in 2012 to $108,337,000. However, the account decreased in 2013 to $89,484,000 (10-K). The highest value in the net accounts receivable account occurred in 2012, and the increase can be attributed to a higher operating income than in other years with $28,895,000, compared to just $1,902,000 in 2013 and a loss of $129,114,000 in 2011 in operating income (10-K). In dividing receivables by total assets to account for general growth over time, the company slowed in growth from 2009 with 11.43 percent to 2010 with 10.34 percent. It then increased in 2011 to 13.75 percent and again in 2012 to 14.48 percent. However, general growth decreased in 2013 down to 11.95 percent. Revenues have been decreasing slowly since 2010; however, the year-over-year rate has remained a constant 0.98 for the past two years. Receivables have been fluctuating between increases in 2011 and 2012 and decreases in 2010 and 2013 (10-K). Year-Over-Year Change Years Receivables Revenues 2013/2012 0.83 0.98 2012/2011 1.09 0.98 2011/2010 1.11 0.96 2010/2009 0.83 1.00 Accounts Receivable Turnover Because Healthways has an accounts receivable turnover ratio of 7.41, the higher ratio means that the company collected its average receivables 7.41 times during the
Thesis%20Healthways%20Final%20Formatting.docx