Enhabit Inc. (EHAB)

Working capital 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
Total current assets	US$ in thousands	210,100	217,800	199,600	212,600	211,800	225,700	217,500
Total current liabilities	US$ in thousands	137,700	143,000	123,500	135,600	132,900	150,300	154,400
Working capital turnover		13.85	13.49	13.42	13.47

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,003,100K ÷ ($210,100K – $137,700K)
= 13.85

The working capital turnover ratio for Enhabit Inc. has been relatively stable and consistent over the past four quarters, ranging between 13.42 and 13.85. This indicates that the company is efficient in managing its working capital to generate sales revenue. A higher turnover ratio signifies that Enhabit is generating a high level of sales in relation to its working capital, which is a positive sign of operational efficiency. Maintaining a consistent working capital turnover ratio demonstrates the company's ability to effectively utilize its current assets to support its sales operations. Overall, Enhabit Inc. appears to be effectively managing its working capital to drive revenue generation.