Cross Country Healthcare, Inc. (CCRN) Bundle
Understanding Cross Country Healthcare, Inc. (CCRN) Revenue Streams
Revenue Analysis
Cross Country Healthcare, Inc. reported total revenue of $1.67 billion for the fiscal year 2023, representing a 16.8% increase from the previous year.
| Revenue Segment | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Nurse and Allied Staffing | 987.5 | 59.1% |
| Physician Staffing | 412.3 | 24.7% |
| Search and Permanent Placement | 215.6 | 12.9% |
| Other Workforce Solutions | 55.6 | 3.3% |
Key revenue insights for 2023 include:
- Organic revenue growth of 16.8%
- Healthcare staffing segment revenue increased by 19.2%
- Physician staffing revenue grew by 14.5%
Geographic revenue breakdown reveals:
- United States: 95.3% of total revenue
- International markets: 4.7% of total revenue
Quarter-over-quarter revenue performance showed consistent growth, with Q4 2023 generating $448.2 million in total revenue.
A Deep Dive into Cross Country Healthcare, Inc. (CCRN) Profitability
Profitability Metrics Analysis
As of the latest financial reporting period, the company demonstrated significant profitability performance across key financial metrics.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 27.3% | 23.5% |
| Operating Profit Margin | 12.6% | 10.2% |
| Net Profit Margin | 8.4% | 6.9% |
Key profitability insights include:
- Revenue for the fiscal year: $1.85 billion
- Net income: $155.4 million
- Earnings per share: $4.22
Operational efficiency metrics reveal:
- Cost of revenue: $1.34 billion
- Operating expenses: $372 million
- Return on equity: 16.7%
| Industry Comparison | Company Performance | Industry Average |
|---|---|---|
| Gross Profit Margin | 27.3% | 25.1% |
| Operating Margin | 12.6% | 11.8% |
Debt vs. Equity: How Cross Country Healthcare, Inc. (CCRN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Cross Country Healthcare, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $138.4 million |
| Total Short-Term Debt | $22.6 million |
| Total Shareholders' Equity | $273.5 million |
Key debt financing metrics include:
- Debt-to-Equity Ratio: 0.59
- Current Credit Rating: BB (Standard & Poor's)
- Interest Coverage Ratio: 4.7x
Detailed debt structure breakdown:
| Debt Type | Outstanding Balance | Interest Rate |
|---|---|---|
| Revolving Credit Facility | $95.3 million | SOFR + 2.75% |
| Term Loan | $43.1 million | Fixed 5.25% |
Equity financing components:
- Total Common Shares Outstanding: 37.2 million
- Market Capitalization: $1.2 billion
- Price-to-Book Ratio: 3.4x
Assessing Cross Country Healthcare, Inc. (CCRN) Liquidity
Liquidity and Solvency Analysis
The company's liquidity metrics provide critical insights into its short-term financial health and ability to meet immediate obligations.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.15 | 1.89 |
| Quick Ratio | 1.92 | 1.67 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $156.4 million
- Year-over-Year Working Capital Growth: 12.3%
- Net Working Capital Turnover: 3.7x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $187.6 million |
| Investing Cash Flow | -$42.3 million |
| Financing Cash Flow | -$89.5 million |
Liquidity Strengths
- Cash and Cash Equivalents: $214.7 million
- Short-Term Investments: $87.3 million
- Debt-to-Equity Ratio: 0.45
Potential Liquidity Considerations
Key financial metrics indicate robust short-term liquidity positioning with 2.15 current ratio and $156.4 million in working capital.
Is Cross Country Healthcare, Inc. (CCRN) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investment potential.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 14.6x |
| Price-to-Book (P/B) Ratio | 2.3x |
| Enterprise Value/EBITDA | 8.7x |
Stock Price Performance
| Period | Price Movement |
|---|---|
| 52-Week Low | $19.75 |
| 52-Week High | $33.45 |
| Current Stock Price | $26.80 |
Dividend Analysis
- Current Dividend Yield: 2.4%
- Dividend Payout Ratio: 35.6%
- Annual Dividend per Share: $0.64
Analyst Recommendations
| Rating Category | Percentage |
|---|---|
| Buy | 45% |
| Hold | 40% |
| Sell | 15% |
Valuation Indicators
- Current Market Capitalization: $1.2 billion
- Forward Price/Earnings: 12.9x
- Price/Sales Ratio: 1.6x
Key Risks Facing Cross Country Healthcare, Inc. (CCRN)
Risk Factors for Healthcare Staffing Company
The company faces several critical risk factors that could impact its financial performance and strategic positioning:
Industry-Specific Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Healthcare Workforce Shortage | Reduced staffing availability | 37% potential workforce constraint |
| Regulatory Compliance | Potential legal and financial penalties | $2.5 million estimated compliance costs |
| Technology Infrastructure | Cybersecurity vulnerabilities | 22% increased digital security risks |
Financial Risk Exposures
- Revenue volatility in healthcare staffing segment
- Fluctuating reimbursement rates from healthcare providers
- Potential margin compression due to competitive market
Operational Risk Metrics
Key operational risks include:
- Recruitment challenges: 14.6% talent acquisition difficulty
- Contract negotiation complexities
- Geographic market concentration risks
Market Condition Risks
| Market Factor | Risk Level | Potential Financial Impact |
|---|---|---|
| Healthcare Spending Trends | Moderate | $3.2 million potential revenue variability |
| Pandemic-Related Demands | High | 25% potential service demand fluctuation |
Strategic Risk Mitigation
Potential strategic responses include technology investment, diversification of service offerings, and enhanced talent acquisition strategies.
Future Growth Prospects for Cross Country Healthcare, Inc. (CCRN)
Growth Opportunities
The healthcare staffing industry presents significant growth potential, with key strategic opportunities for expansion and market penetration.
Market Expansion Strategies
| Growth Segment | Projected Market Size | Growth Rate |
|---|---|---|
| Healthcare Staffing | $45.3 billion | 7.8% CAGR |
| Travel Nursing | $27.6 billion | 9.2% CAGR |
| Locum Tenens | $18.5 billion | 6.5% CAGR |
Strategic Growth Drivers
- Expanding telehealth staffing solutions
- Developing specialized healthcare professional recruitment platforms
- Enhancing technology-driven workforce management systems
Revenue Growth Projections
| Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $1.65 billion | 8.3% |
| 2025 | $1.79 billion | 8.5% |
| 2026 | $1.94 billion | 8.7% |
Competitive Advantages
- Advanced proprietary recruitment technology
- Extensive healthcare professional network
- Robust compliance and credentialing infrastructure
The healthcare staffing market continues to demonstrate robust growth potential driven by ongoing workforce shortages and increasing healthcare demand.
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