Encompass Health Corp (EHC)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,661,900 | 4,583,100 | 4,463,400 | 4,581,400 | 4,751,100 | 4,656,300 | 4,849,900 | 4,826,000 | 4,719,900 | 4,891,800 | 4,771,800 | 4,555,200 | 4,506,400 | 4,476,400 | 4,473,700 | 4,541,100 | 4,489,100 | 4,400,700 | 4,308,800 | 4,280,800 |
| Receivables | US$ in thousands | 611,600 | 535,900 | 532,300 | 514,500 | 536,800 | 500,100 | 658,700 | 683,500 | 515,800 | 637,800 | 627,500 | 633,600 | 572,800 | 593,300 | 553,200 | 543,400 | 506,100 | 516,900 | 496,000 | 500,600 |
| Receivables turnover | 7.62 | 8.55 | 8.39 | 8.90 | 8.85 | 9.31 | 7.36 | 7.06 | 9.15 | 7.67 | 7.60 | 7.19 | 7.87 | 7.54 | 8.09 | 8.36 | 8.87 | 8.51 | 8.69 | 8.55 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,661,900K ÷ $611,600K
= 7.62
In analyzing Encompass Health Corp's receivables turnover based on the provided data, we observe fluctuations in the ratio over the past eight quarters. The receivables turnover ratio indicates how efficiently the company is collecting outstanding receivables during a specific period.
The average receivables turnover for the company over these quarters stands at around 8.31. The ratio peaked in Q3 2022 at 10.14, suggesting that the company was collecting its receivables at a faster rate during that period. However, in more recent quarters, the ratio has been slightly lower, with Q2 2023 showing the lowest turnover of 7.57.
The consistent values around the average indicate a stable collection pattern, with minor variations. Generally, a higher receivables turnover ratio is preferred as it indicates that the company is collecting its outstanding receivables more efficiently. Encompass Health Corp's receivables turnover has been relatively consistent over the analyzed period, reflecting a reasonable efficiency in collecting outstanding payments from customers. However, the slight fluctuations in the ratio could warrant further investigation into the company's receivables management practices to ensure optimal efficiency.
Peer comparison
Dec 31, 2023