Encompass Health Corp (EHC)

Cash conversion cycle

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 70.92 63.20 59.17 53.92 75.49 119.47 104.29 113.53 133.96 115.11 109.84 119.06 108.74 112.86 119.28
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.00 70.92 63.20 59.17 53.92 75.49 119.47 104.29 113.53 133.96 115.11 109.84 119.06 108.74 112.86 119.28

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle measures how long it takes for a company to convert its resource inputs into cash inflows. For Encompass Health Corp, the cash conversion cycle has shown fluctuations over the years:

- The cycle ranged from a high of 133.96 days in September 2021 to a low of 53.92 days in December 2022.
- In general, a lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash from its operations more quickly.
- The significant drop in the cash conversion cycle from September 2022 to December 2022 suggests an improvement in the company's ability to convert its resources into cash.
- The cycle reaching 0 days in December 2023 and maintaining that level through the end of 2024 could indicate that Encompass Health Corp has optimized its cash management processes, potentially improving liquidity and working capital efficiency.
- Overall, the trend in the cash conversion cycle for Encompass Health Corp demonstrates fluctuations and improvements in its working capital management over the analyzed period.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash conversion cycle
Encompass Health Corp
EHC
0.00
Mednax Inc
MD
0.00
Select Medical Holdings
SEM
0.00