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