The Ensign Group Inc (ENSG)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,206,033 | 2,994,548 | 2,843,159 | 2,669,273 | 2,514,953 | 2,415,626 | 2,327,347 | 2,250,556 | 2,173,075 | 2,123,079 | 2,071,016 | 2,028,814 | 1,999,438 | 1,746,959 | 1,757,850 | 1,762,830 | 1,739,305 | 1,929,188 | 1,860,075 | 1,791,416 |
| Payables | US$ in thousands | 92,811 | 77,091 | 78,207 | 81,466 | 77,087 | 63,495 | 60,414 | 56,850 | 58,116 | 57,206 | 58,700 | 53,942 | 50,901 | 50,971 | 42,694 | 40,917 | 44,973 | 40,019 | 44,694 | 44,595 |
| Payables turnover | 34.54 | 38.84 | 36.35 | 32.77 | 32.62 | 38.04 | 38.52 | 39.59 | 37.39 | 37.11 | 35.28 | 37.61 | 39.28 | 34.27 | 41.17 | 43.08 | 38.67 | 48.21 | 41.62 | 40.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,206,033K ÷ $92,811K
= 34.54
Ensign Group Inc's payables turnover ratio has been fluctuating over the past eight quarters. It measures how efficiently the company is managing its accounts payable by examining how many times a company pays off its average accounts payable balance during a specific period.
In Q4 2023, the payables turnover ratio was 31.69, indicating that the company paid off its accounts payable approximately 31.69 times during that quarter. This was a decrease from the previous quarter (Q3 2023) when the ratio was 36.24.
Overall, the trend over the last two years shows some variability, with the ratio ranging from a low of 30.54 in Q4 2022 to a high of 36.82 in Q1 2022. The average payables turnover ratio during this period is around 34, indicating that Ensign Group Inc typically pays off its accounts payable around 34 times a year.
A high payables turnover ratio may suggest that the company is efficiently managing its payments to suppliers and vendors. However, a drastic increase or decrease in the ratio could indicate changes in payment terms or relationships with suppliers. It is important for analysts to further investigate the reasons behind these fluctuations to gain a better understanding of Ensign Group Inc's financial management practices.
Peer comparison
Dec 31, 2023