The Ensign Group Inc (ENSG)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,605,900 | 3,206,030 | 2,514,950 | 2,173,080 | 1,999,440 |
| Payables | US$ in thousands | 98,947 | 92,811 | 77,087 | 58,116 | 50,901 |
| Payables turnover | 36.44 | 34.54 | 32.62 | 37.39 | 39.28 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,605,900K ÷ $98,947K
= 36.44
The payables turnover ratio for The Ensign Group Inc has shown a steady decline over the years, decreasing from 39.28 in December 31, 2020, to 37.39 in December 31, 2021, further dropping to 32.62 in December 31, 2022. However, there was a slight improvement in December 31, 2023, with the ratio increasing to 34.54, followed by a subsequent increase to 36.44 in December 31, 2024.
A decreasing payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which may lead to strained relationships or potential liquidity issues. However, the recent uptick in the ratio suggests an improvement in managing payables. It is essential for The Ensign Group Inc to monitor its payables turnover ratio closely to ensure efficient management of its accounts payable and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2024