Encompass Health Corp (EHC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,866,100 | 2,610,200 | 3,179,800 | 2,934,000 | 2,914,800 |
| Payables | US$ in thousands | 170,000 | 132,900 | 134,000 | 115,000 | 94,600 |
| Payables turnover | 16.86 | 19.64 | 23.73 | 25.51 | 30.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,866,100K ÷ $170,000K
= 16.86
The payables turnover ratio for Encompass Health Corp has consistently been reported as 0.00 from December 31, 2019, to December 31, 2023. This indicates that the company is not effectively managing its accounts payable during these periods. A payables turnover ratio of 0.00 suggests that Encompass Health Corp is not using its suppliers' credit efficiently, potentially creating liquidity and operational risks. Further investigation into the company's accounts payable processes, payment terms, and supplier relationships is warranted to improve the management of payables and optimize working capital efficiency.
Peer comparison
Dec 31, 2023