Encompass Health Corp (EHC)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 16.86 | 19.64 | 23.73 | 25.51 | 30.81 | |
| Number of days of payables | days | 21.65 | 18.58 | 15.38 | 14.31 | 11.85 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 16.86
= 21.65
To analyze the number of days of payables for Encompass Health Corp, we need to calculate the number of days it takes the company to pay its suppliers. This can be done using the formula:
Number of Days of Payables = (Accounts Payable / Cost of Goods Sold) * 365
Unfortunately, the data provided only includes placeholders for the number of days of payables for each year without specific values. Without the actual figures for accounts payable and cost of goods sold for each year, we are unable to calculate the exact number of days of payables for Encompass Health Corp.
The number of days of payables is a crucial metric in assessing a company's liquidity position and its ability to manage its working capital effectively. A decreasing number of days of payables may indicate that the company is paying its suppliers more quickly, potentially signaling either stronger financial health or a need to improve relationships with suppliers. Conversely, an increasing number of days of payables could suggest a cash flow advantage for the company or potential liquidity concerns.
To perform a more in-depth analysis and provide further insights, it would be necessary to obtain the specific financial data for each year and calculate the number of days of payables accordingly.
Peer comparison
Dec 31, 2023