Encompass Health Corp (EHC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,661,000 | 4,174,400 | 4,959,100 | 4,461,100 | 4,440,800 |
| Receivables | US$ in thousands | 611,600 | 536,800 | 515,800 | 572,800 | 506,100 |
| Receivables turnover | 7.62 | 7.78 | 9.61 | 7.79 | 8.77 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,661,000K ÷ $611,600K
= 7.62
The receivables turnover ratio for Encompass Health Corp has shown a decreasing trend over the past five years. In 2019, the ratio was the highest at 9.10, indicating that the company collected its accounts receivable approximately 9.10 times during that year. Subsequently, the ratio declined to 8.11 in 2020, increased slightly to 7.53 in 2021, then rose again to 8.10 in 2022, before dropping to 7.85 in 2023.
A lower receivables turnover ratio may suggest that the company is taking longer to collect its accounts receivable, which could lead to cash flow issues or increased risk of bad debts. It's important for the company to monitor and improve its collection process to ensure it efficiently converts its receivables into cash.
Overall, Encompass Health Corp's receivables turnover ratios indicate fluctuations in its accounts receivable collection efficiency over the years, highlighting the need for continued monitoring and potential improvements in the company's receivables management practices.
Peer comparison
Dec 31, 2023