Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial stability of Cross Country Healthcare, Inc. (CCRN)? As investors, understanding a company's financial health is crucial for making informed decisions. Did you know that in 2024, Cross Country Healthcare's revenue stood at $1.34 billion USD, a 33% decrease from the previous year? Moreover, the company held $81.63 million in total cash with total liabilities of $170.29 million. With a pending acquisition by Aya Healthcare for approximately $620 million, how will these figures shape the future of Cross Country Healthcare? Dive in as we dissect the key financial metrics, offering you a clear perspective on CCRN's current standing and future potential.

Cross Country Healthcare, Inc. (CCRN) Revenue Analysis

Analyzing Cross Country Healthcare, Inc.'s revenue streams involves understanding where the company's income originates, how it has changed over time, and the relative importance of each segment. Recent financial data is crucial for investors to assess the company's financial health and growth potential.

Here's a breakdown of what to consider:

• Primary Revenue Sources: These include the different types of services or products Cross Country Healthcare, Inc. offers, such as travel nurse staffing, allied health staffing, physician staffing, and education and training programs.
• Year-over-Year Revenue Growth Rate: Examining the historical trends in revenue growth, including percentage increases or decreases, provides insights into the company's performance over time.
• Contribution of Business Segments: Understanding how each business segment contributes to the overall revenue helps identify which areas are driving growth and which may be underperforming.
• Significant Changes in Revenue Streams: Identifying any notable shifts in revenue sources, such as new service offerings or changes in demand for existing services, is important for understanding the company's strategic direction and adaptability.

For a deeper understanding of Cross Country Healthcare, Inc.'s mission, vision, and core values, refer to this resource: Mission Statement, Vision, & Core Values of Cross Country Healthcare, Inc. (CCRN).

Cross Country Healthcare, Inc. (CCRN) Profitability Metrics

Analyzing Cross Country Healthcare, Inc. (CCRN)'s profitability involves examining several key metrics to understand its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which provide insights into how well the company manages its costs and generates earnings from its revenue.

Here's a breakdown of what to consider:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that the company is efficient in managing its production costs and pricing strategies.
• Operating Profit Margin: This metric measures the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue that translates into net profit after all expenses, including interest and taxes, have been deducted. It is a comprehensive measure of the company's overall profitability.

To assess Cross Country Healthcare, Inc. (CCRN)'s profitability, it's essential to evaluate these margins over time to identify trends and compare them against industry averages to gauge the company's relative performance. For instance, consistent improvement in gross margins may signal better cost control or pricing strategies, while a declining net profit margin could indicate rising operating expenses or increased interest and tax burdens.

Here's an example of how profitability metrics might be analyzed (Note: The following table contains hypothetical data for illustrative purposes only):

In this hypothetical scenario, Cross Country Healthcare, Inc. (CCRN) shows a positive trend in all three profitability margins from 2021 to 2024, suggesting improved operational efficiency and financial performance.

Operational efficiency plays a crucial role in Cross Country Healthcare, Inc. (CCRN)'s profitability. Effective cost management and favorable gross margin trends can significantly impact the bottom line. Investors should closely monitor these aspects to assess the company's ability to sustain and improve its profitability over the long term.

Further insights into the company's investor profile can be found here: Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who’s Buying and Why?

Cross Country Healthcare, Inc. (CCRN) Debt vs. Equity Structure

Understanding how Cross Country Healthcare, Inc. (CCRN) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities.

As of the fiscal year 2024, Cross Country Healthcare, Inc. (CCRN) demonstrates the following financial structure:

• The company’s long-term debt stands at $168.2 million.
• Total liabilities amounted to $428.6 million.
• Shareholders' equity is valued at $563.8 million.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. For Cross Country Healthcare, Inc. (CCRN), the debt-to-equity ratio can be calculated using the provided data:

Debt-to-Equity Ratio = Total Liabilities / Shareholders' Equity

Using the 2024 figures:

Debt-to-Equity Ratio = $428.6 million / $563.8 million = 0.76

A debt-to-equity ratio of 0.76 suggests that Cross Country Healthcare, Inc. (CCRN) has a balanced approach to financing, with a considerable portion of its assets funded by equity. This ratio is influenced by the company's strategic decisions regarding debt and equity financing. This indicates that for every dollar of equity, the company has $0.76 in debt.

Here's a breakdown of Cross Country Healthcare, Inc.'s (CCRN) debt and equity components based on the latest available data:

Understanding these elements provides key insights into Cross Country Healthcare, Inc.'s (CCRN) financial strategy and stability, helping investors make informed decisions. To delve deeper into Cross Country Healthcare, Inc.'s (CCRN) financial health, consider reading: Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors

Cross Country Healthcare, Inc. (CCRN) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Cross Country Healthcare, Inc. (CCRN), assessing these metrics provides insights into its financial stability and risk profile.

Assessing Cross Country Healthcare, Inc.'s Liquidity:

Analyzing Cross Country Healthcare, Inc.'s liquidity involves examining key ratios and working capital trends to gauge its ability to cover short-term liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets.
  • The current ratio is calculated by dividing current assets by current liabilities.
  • The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, providing a more conservative measure of liquidity.

A higher current or quick ratio generally indicates stronger liquidity. However, it's essential to compare these ratios to industry averages and historical data to determine if Cross Country Healthcare, Inc.'s liquidity position is healthy.

• Analysis of Working Capital Trends: Working capital, defined as the difference between current assets and current liabilities, is a crucial metric for evaluating a company's short-term financial health.

Monitoring trends in working capital can reveal whether Cross Country Healthcare, Inc. is efficiently managing its short-term assets and liabilities. A declining working capital balance may signal potential liquidity issues, while an increasing balance could indicate improved short-term financial stability.

• Cash Flow Statements Overview: A thorough examination of cash flow statements provides insights into the company’s ability to generate cash from its operations, investments, and financing activities.
  • Operating Cash Flow: Measures the cash generated from the company's core business activities.
  • Investing Cash Flow: Relates to the purchase and sale of long-term assets.
  • Financing Cash Flow: Involves activities related to debt, equity, and dividends.

Positive operating cash flow is particularly important, as it indicates that the company can fund its operations and growth without relying heavily on external financing. Analyzing the trends in these cash flow categories can highlight potential liquidity strengths or weaknesses.

Potential Liquidity Concerns or Strengths:

Based on the analysis of current and quick ratios, working capital trends, and cash flow statements, one can identify potential liquidity concerns or strengths for Cross Country Healthcare, Inc. Factors that could impact liquidity include:

• Changes in accounts receivable and payable management
• Significant capital expenditures
• Debt maturities
• Economic downturns affecting the healthcare staffing industry

Conversely, strengths might include:

• Strong operating cash flow
• Efficient working capital management
• Access to credit facilities

A comprehensive liquidity assessment is crucial for investors to understand Cross Country Healthcare, Inc.'s ability to meet its short-term obligations and sustain its operations. Monitoring these key metrics over time provides valuable insights into the company's financial health and risk profile.

To gain more insights about Cross Country Healthcare, Inc. (CCRN), check this out: Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who’s Buying and Why?

Cross Country Healthcare, Inc. (CCRN) Valuation Analysis

When evaluating whether Cross Country Healthcare, Inc. (CCRN) is overvalued or undervalued, several key financial ratios and indicators come into play. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Let's delve into these aspects:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Cross Country Healthcare Inc. (CCRN) has a negative P/E ratio, around -32.3 to -34.0. This is because the company has negative earnings per share (EPS). A negative P/E ratio suggests that the company is not currently profitable. Some sources list the forward P/E ratio as 35.72 or provide estimates for 2025 as 39.61.
• Price-to-Book (P/B) Ratio: The P/B ratio for Cross Country Healthcare Inc. (CCRN) is approximately 1.10 to 1.18 as of April 2025. This indicates that the market values the company slightly above its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for Cross Country Healthcare Inc. (CCRN) varies across different sources. One source indicates the latest twelve months EV/EBITDA is 23.26x. Another source mentions a recent EV/EBITDA ratio of 83.18. Another source lists the EV/EBITDA ratio as 19.28 as of April 5, 2025. These varying figures suggest volatility in the company's earnings relative to its enterprise value. The EV/EBITDA ratio peaked in December 2024 at 23.4x.

Here's a brief overview of Cross Country Healthcare Inc. (CCRN)'s valuation ratios:

Stock price trends offer another lens through which to view valuation. Over the past 12 months, Cross Country Healthcare Inc. (CCRN) stock has decreased by approximately -17.08% to -20.04%. The 52-week range has been between $9.58 and $18.50. As of April 2025, the stock price hovers around $14.33 to $15.00.

Dividend yield and payout ratios are also important, though Cross Country Healthcare Inc. (CCRN) does not currently offer a dividend. The dividend yield is 0.00%.

Analyst consensus provides an external perspective on the stock's valuation. According to Wall Street analysts, the consensus is to 'Buy' Cross Country Healthcare Inc. (CCRN) stock. Of the analysts, approximately 33.33% recommend a 'Strong Buy', while about 66.67% suggest a 'Hold'. The average price target from analysts is $18.41, with forecasts ranging from $18.00 to $18.61. This suggests a potential upside of approximately 28.99% from the current share price.

For further insights, you might find this resource helpful: Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors

Cross Country Healthcare, Inc. (CCRN) Risk Factors

Understanding the risks associated with Cross Country Healthcare, Inc. (CCRN) is crucial for investors. These risks can stem from both internal and external factors, impacting the company’s financial health and future performance. Here's an overview of some key risk areas:

Industry Competition: The healthcare staffing industry is highly competitive. Several factors contribute to this intense competition:

• Numerous Competitors: The industry includes a large number of staffing firms, ranging from small, local agencies to large, national corporations.
• Low Barriers to Entry: The relative ease of starting a staffing agency increases the number of competitors.
• Pricing Pressures: Competition for contracts can lead to pricing pressures, potentially squeezing profit margins.

Regulatory Changes: Regulatory changes in the healthcare industry can significantly impact Cross Country Healthcare, Inc.'s operations and financial results. Here's how:

• Licensing and Compliance: Staffing agencies must comply with various federal and state regulations related to healthcare professionals' licensing and credentialing. Changes in these regulations can increase compliance costs.
• Healthcare Reform: Changes in healthcare laws, such as the Affordable Care Act (ACA) or potential future reforms, can affect the demand for healthcare services and, consequently, the demand for staffing services.
• Reimbursement Rates: Government and private insurance reimbursement rates for healthcare services can impact the profitability of healthcare providers, which in turn affects their staffing budgets.

Market Conditions: Economic downturns, healthcare funding shortages, and other adverse market conditions can reduce the demand for Cross Country Healthcare, Inc.'s services, leading to decreased revenue and profitability.

Operational Risks: Operational risks can disrupt Cross Country Healthcare, Inc.'s ability to deliver services effectively and efficiently.

• Recruitment and Retention: Attracting and retaining qualified healthcare professionals is essential. Shortages of nurses, physicians, and other healthcare workers can limit the company’s ability to meet client demands.
• Technology and Infrastructure: The company relies on technology for recruitment, placement, and management of healthcare professionals. System failures, cybersecurity threats, or inadequate technology infrastructure can disrupt operations.
• Contract Management: Managing contracts with healthcare facilities requires careful attention to detail. Disputes over contract terms, pricing, or service levels can lead to financial losses and damage the company’s reputation.

Financial Risks: Financial risks can threaten Cross Country Healthcare, Inc.'s stability and ability to meet its obligations.

• Debt Levels: High levels of debt can increase interest expenses and reduce financial flexibility. The company’s ability to service its debt depends on its cash flow from operations.
• Credit Ratings: Downgrades in credit ratings can increase borrowing costs and limit access to capital markets.
• Liquidity: Insufficient cash flow or access to credit can impair the company’s ability to fund operations, make acquisitions, or invest in growth opportunities.

Strategic Risks: Strategic risks can impact Cross Country Healthcare, Inc.'s long-term competitiveness and market position.

• Integration of Acquisitions: Successfully integrating acquired companies is critical to realizing synergies and achieving growth targets. Failure to integrate operations, technologies, or cultures can lead to financial losses.
• Diversification: Expanding into new service lines or geographic markets can be risky. The company may lack expertise or face unexpected challenges in new areas.
• Innovation: Failing to adapt to changing market needs or technological advancements can erode the company’s competitive advantage.

Below is a summary of potential risks based on recent filings (as of the latest available information):

Mitigation strategies often involve diversifying service offerings, strengthening client relationships, implementing robust compliance programs, and investing in technology to improve efficiency and security.

For more detailed insights, check out: Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors

Cross Country Healthcare, Inc. (CCRN) Growth Opportunities

To understand Cross Country Healthcare, Inc.'s (CCRN) potential, it's essential to examine the factors driving its growth and how these elements might shape its future performance. Here’s a breakdown of the company's future growth prospects:

Key Growth Drivers:

• Market Expansion: Cross Country Healthcare, Inc. (CCRN) could explore new geographic markets or expand its services within existing markets to capture a larger share of the healthcare staffing and solutions industry.
• Acquisitions: Strategic acquisitions of smaller or complementary businesses can quickly expand Cross Country Healthcare, Inc. (CCRN)'s service offerings and market presence.
• Product Innovations: Introducing new technology platforms or service models can attract more clients and healthcare professionals, driving revenue growth.

Future Revenue Growth Projections and Earnings Estimates:

While specific revenue growth projections and earnings estimates can fluctuate based on market conditions and company performance, here's a general approach to understanding them:

• Analysts' estimates provide insights into expected revenue growth. For example, analysts may project a revenue increase of 5-10% annually based on current market trends and company initiatives.
• Earnings estimates are crucial for investors. These estimates, often presented as Earnings Per Share (EPS), reflect the anticipated profitability of Cross Country Healthcare, Inc. (CCRN).

Strategic Initiatives and Partnerships:

• Technology Investments: Investing in advanced technology platforms to streamline staffing processes and improve service delivery.
• Partnerships: Collaborating with healthcare systems and educational institutions to create innovative workforce solutions.

Competitive Advantages:

• Scale and Scope: Cross Country Healthcare, Inc. (CCRN)'s size and breadth of services provide a competitive edge, allowing it to serve a wide range of client needs.
• Established Relationships: Strong relationships with healthcare providers and a vast network of healthcare professionals enhance its ability to match talent with opportunities effectively.

For more insights into Cross Country Healthcare, Inc. (CCRN) and its investors, check out: Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who’s Buying and Why?