The Ensign Group Inc (ENSG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,206,030 | 2,514,950 | 2,173,080 | 1,999,440 | 1,739,300 |
| Payables | US$ in thousands | 92,811 | 77,087 | 58,116 | 50,901 | 44,973 |
| Payables turnover | 34.54 | 32.62 | 37.39 | 39.28 | 38.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,206,030K ÷ $92,811K
= 34.54
The payables turnover ratio measures how efficiently Ensign Group Inc is managing its accounts payable by evaluating how many times the company pays off its suppliers in a given period.
Ensign Group Inc's payables turnover has shown a fluctuating trend over the past five years, ranging from a low of 30.54 in 2022 to a high of 36.64 in 2020. Higher payables turnover ratios indicate that the company is paying off its suppliers more frequently, which could be reflective of strong cash flow management or favorable credit terms with suppliers.
In 2023, the payables turnover ratio increased to 31.69 from the previous year, suggesting that Ensign Group Inc managed its accounts payable more efficiently by paying suppliers more frequently. This could potentially indicate effective management of working capital and relationships with suppliers.
Overall, Ensign Group Inc's payables turnover ratio has been relatively stable and at healthy levels, indicating efficient management of accounts payable and potential positive relationships with suppliers. Tracking this ratio over time can provide insights into the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023