Enhabit Inc. (EHAB)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Revenue (ttm)	US$ in thousands	1,003,100	1,009,200	1,021,300	1,037,200
Receivables	US$ in thousands	167,700	170,500	151,500	160,800	161,000	156,700	154,600
Receivables turnover		5.98	5.92	6.74	6.45

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,003,100K ÷ $167,700K
= 5.98

The receivables turnover ratio for Enhabit Inc. has been relatively stable over the past four quarters, ranging from 5.92 to 6.74. This indicates that, on average, the company collects its accounts receivable approximately 6 times within a year. A higher receivables turnover ratio suggests that the company is efficient in collecting payments from customers, which is a positive sign of effective credit management. However, it is essential to monitor any significant changes in this ratio over time to assess the company's ability to convert credit sales into cash.