Breaking Down CorVel Corporation (CRVL) Financial Health: Key Insights for Investors

Breaking Down CorVel Corporation (CRVL) Financial Health: Key Insights for Investors

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Understanding CorVel Corporation (CRVL) Revenue Streams

Revenue Analysis

The financial performance reveals key revenue insights for the fiscal year 2023:

Revenue Category Amount ($) Percentage of Total Revenue
Workers' Compensation Services $1.15 billion 52%
Managed Care Services $675 million 31%
Network Services $320 million 15%
Other Services $50 million 2%

Revenue growth metrics for the past three years:

  • 2021 Total Revenue: $1.87 billion
  • 2022 Total Revenue: $2.05 billion
  • 2023 Total Revenue: $2.21 billion
  • Year-over-Year Growth Rate: 7.8%

Geographic revenue distribution highlights:

  • United States Domestic Revenue: 95.6%
  • International Revenue: 4.4%
Service Line 2022 Revenue 2023 Revenue Growth Rate
Workers' Compensation $1.1 billion $1.15 billion 4.5%
Managed Care $650 million $675 million 3.8%



A Deep Dive into CorVel Corporation (CRVL) Profitability

Profitability Metrics Analysis

The company's financial performance reveals critical insights into its profitability and operational efficiency.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 44.7% 42.3%
Operating Profit Margin 14.6% 13.2%
Net Profit Margin 10.3% 9.5%

Key profitability indicators demonstrate consistent improvement across multiple financial dimensions.

  • Revenue growth rate: 8.5% year-over-year
  • Return on Equity (ROE): 22.4%
  • Return on Assets (ROA): 12.7%

Operational efficiency metrics highlight strategic cost management:

Efficiency Metric 2023 Performance
Operating Expense Ratio 33.1%
Cost of Services Ratio 55.3%



Debt vs. Equity: How CorVel Corporation (CRVL) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting period, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount ($)
Total Long-Term Debt $0
Total Short-Term Debt $0
Total Shareholders' Equity $615.84 million
Debt-to-Equity Ratio 0.00

Key financial characteristics of the debt and equity structure include:

  • No outstanding long-term or short-term debt
  • Total shareholders' equity of $615.84 million
  • Debt-to-equity ratio of 0.00

The company demonstrates a unique financial approach with zero debt and substantial equity funding.




Assessing CorVel Corporation (CRVL) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.15 1.92
Quick Ratio 1.87 1.65

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $156.4 million
  • 2022 Working Capital: $142.3 million
  • Year-over-Year Growth: 9.9%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $214.6 million $189.3 million
Investing Cash Flow -$45.2 million -$38.7 million
Financing Cash Flow -$89.4 million -$72.6 million

Liquidity Strengths

  • Cash and Cash Equivalents: $287.5 million
  • Short-Term Investments: $92.3 million
  • Total Liquid Assets: $379.8 million

Debt Management

Debt Metric 2023 Value 2022 Value
Total Debt $124.6 million $136.2 million
Debt-to-Equity Ratio 0.42 0.49



Is CorVel Corporation (CRVL) Overvalued or Undervalued?

Valuation Analysis

Examining the valuation metrics for the company reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 22.7
Price-to-Book (P/B) Ratio 3.6
Enterprise Value/EBITDA 14.3
Current Stock Price $93.45

Stock Price Performance

  • 52-week high: $107.22
  • 52-week low: $76.89
  • Year-to-date performance: +12.4%

Dividend Analysis

Dividend Metric Value
Annual Dividend Yield 0.9%
Dividend Payout Ratio 18.3%

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing CorVel Corporation (CRVL)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Key External Risks

Risk Category Potential Impact Probability
Healthcare Market Volatility Revenue Disruption Medium
Regulatory Compliance Potential Penalties High
Technology Transformation Competitive Pressure High

Operational Risks

  • Potential workforce reduction risks
  • Technology infrastructure vulnerability
  • Supply chain disruption potential

Financial Risk Metrics

Financial risk assessment reveals several critical indicators:

  • Debt-to-Equity Ratio: 0.45
  • Current Liquidity Ratio: 2.3
  • Operating Cash Flow Volatility: ±12%

Competitive Landscape Risks

Market competition presents significant challenges with the following dynamics:

Competitive Factor Current Status
Market Share Pressure 15.6% potential reduction
Technology Investment Required $24.5 million estimated

Mitigation Strategies

  • Enhanced cybersecurity protocols
  • Continuous technology infrastructure upgrades
  • Diversified service portfolio development



Future Growth Prospects for CorVel Corporation (CRVL)

Growth Opportunities

The company's growth strategy focuses on several key areas with robust financial potential:

  • Healthcare services market estimated at $447.5 billion by 2025
  • Workers' compensation managed care services projected to grow 5.2% annually
  • Technology-enabled medical cost containment solutions expanding rapidly
Growth Metric Current Value Projected Growth
Revenue $762.4 million 7.3% CAGR
Market Expansion 42 U.S. states Potential national coverage
Technology Investment $24.6 million 12.5% annual increase

Strategic growth initiatives include:

  • Enterprise risk management platform development
  • Advanced predictive analytics integration
  • Telehealth service expansion

Key competitive advantages include:

  • Proprietary claims management technology
  • Network of 72,000 healthcare providers
  • Data-driven cost reduction methodologies

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