The Ensign Group Inc (ENSG)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,260,280 | 3,721,290 | 3,025,470 | 2,627,460 | 2,402,600 |
| Receivables | US$ in thousands | 569,897 | 485,039 | 408,432 | 328,731 | 305,062 |
| Receivables turnover | 7.48 | 7.67 | 7.41 | 7.99 | 7.88 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,260,280K ÷ $569,897K
= 7.48
The receivables turnover ratio for The Ensign Group Inc has shown stable performance over the years, ranging from 7.41 to 7.99. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers within a specific period.
A higher receivables turnover ratio signifies that the company is more efficient in collecting its accounts receivables, which is a positive indicator of strong liquidity and effective credit management.
In the case of The Ensign Group Inc, the consistency of the receivables turnover ratio around the 7.5 to 8 range suggests that the company has been maintaining a steady pace in collecting its receivables over the years. However, there may be opportunities for the company to further improve its collection process to enhance cash flow and working capital management.
Peer comparison
Dec 31, 2024