The Ensign Group Inc (ENSG)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 136.39 | — | — | — | — | — | — | 541.67 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.47 | 7.41 | 7.24 | 7.41 | 7.69 | 7.53 | 7.60 | 7.20 | 7.41 | 8.22 | 8.29 | 7.98 | 7.99 | 8.18 | 7.96 | 7.81 | 7.88 | 7.12 | 6.92 | 6.30 |
| Payables turnover | 36.44 | 39.22 | 38.54 | 40.13 | 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 |
| Working capital turnover | 10.28 | 9.59 | 10.31 | 10.17 | 11.95 | 11.02 | 10.98 | 13.05 | 15.20 | 18.21 | 18.63 | 22.69 | 22.53 | 13.87 | 23.53 | 34.74 | 116.87 | 1,469.13 | — | 20.13 |
The Ensign Group Inc's activity ratios provide insights into how effectively the company is managing its assets and liabilities to generate revenue.
1. Inventory Turnover: The inventory turnover ratio indicates the number of times a company sells and replaces its inventory during a specific period. The company's inventory turnover has shown a significant increase from 136.39 in September 2024 to 541.67 in December 2024, which suggests that the company has been able to sell off its inventory at a much faster rate in the latest period.
2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company is collecting its receivables. The trend in receivables turnover has been relatively stable, hovering around 7 to 8 times per year. This indicates that the company's credit policy and collection efforts are consistent and effective.
3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. The payables turnover for The Ensign Group Inc has fluctuated but remained relatively stable over the years. The company's latest payables turnover of 36.44 in December 2024 suggests that the company is managing its payables efficiently.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. The ratio has shown a declining trend over the years, indicating a decrease in the efficiency of using working capital to generate sales. The working capital turnover decreased from 20.13 in March 2020 to 10.28 in December 2024.
In summary, The Ensign Group Inc has demonstrated effective management of inventory and receivables, while also maintaining a stable payables turnover. However, there has been a decline in the efficiency of utilizing working capital to generate revenue over the years.
Average number of days
| 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 | — | 2.68 | — | — | — | — | — | — | 0.67 | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 48.85 | 49.27 | 50.41 | 49.25 | 47.45 | 48.49 | 48.05 | 50.66 | 49.27 | 44.39 | 44.05 | 45.73 | 45.67 | 44.64 | 45.85 | 46.71 | 46.34 | 51.28 | 52.72 | 57.91 |
| Number of days of payables | days | 10.02 | 9.31 | 9.47 | 9.10 | 10.57 | 9.40 | 10.04 | 11.14 | 11.19 | 9.59 | 9.47 | 9.22 | 9.76 | 9.83 | 10.35 | 9.70 | 9.29 | 10.65 | 8.86 | 8.47 |
The activity ratios for The Ensign Group Inc can provide insights into the efficiency of its operations.
1. Days of Inventory on Hand (DOH): The company's inventory turnover has varied over the years, with an average of approximately 1 to 3 days. The decrease in days of inventory on hand from 2022 to 2024 indicates that the company has been managing its inventory more efficiently - holding less inventory for shorter periods.
2. Days of Sales Outstanding (DSO): The DSO reflects the average number of days it takes for the company to collect its accounts receivable. The trend shows a gradual decline in DSO from 2020 to 2022, indicating that the company has been collecting its receivables more quickly. However, there was a slight increase in DSO from 2022 to 2024, suggesting a potential slowdown in collections efficiency.
3. Number of Days of Payables: The days of payables represent the average number of days it takes for the company to pay its suppliers. The trend shows fluctuations in the number of days of payables from 2020 to 2024, with the company taking anywhere from 8 to 11 days to pay its bills. The increase in days of payables from 2022 to 2024 suggests that the company may be taking longer to settle its payables, potentially affecting its relationships with suppliers.
Overall, a lower DOH, DSO, and higher payables turnover ratio indicate better efficiency and cash flow management. The company should continue to monitor and optimize these activity ratios to improve its operational performance and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.30 | 3.37 | 3.36 | 3.49 | 3.42 | 3.33 | 3.36 | 3.19 | 3.05 | 3.02 | 3.09 | 2.99 | 2.96 | 3.24 | 3.17 | 3.13 | 3.09 | 2.67 | 2.68 | 2.65 |
| Total asset turnover | 0.91 | 0.89 | 0.89 | 0.89 | 0.89 | 0.87 | 0.86 | 0.83 | 0.88 | 0.89 | 0.90 | 0.89 | 0.92 | 0.91 | 0.94 | 0.97 | 0.94 | 0.85 | 0.84 | 0.87 |
The Ensign Group Inc's long-term activity ratios show that the company's fixed asset turnover has been consistently increasing over the past few years, indicating that the company is generating more revenue from its fixed assets. This suggests that Ensign Group is effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown some fluctuations, with a general trend of slight decrease over the period. This ratio measures the company's ability to generate revenue from its total assets. The decreasing trend in total asset turnover may indicate a decrease in sales generated from the company's total assets.
Overall, while Ensign Group's fixed asset turnover is improving, the decreasing trend in total asset turnover implies that the company may need to focus on optimizing the utilization of its total assets to improve its revenue generation efficiency.