The Ensign Group Inc (ENSG)
Working capital 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 |
| Total current assets | US$ in thousands | 1,157,630 | 1,046,930 | 781,125 | 639,709 | 582,956 |
| Total current liabilities | US$ in thousands | 743,428 | 734,747 | 582,072 | 523,068 | 562,399 |
| Working capital turnover | 10.29 | 11.92 | 15.20 | 22.53 | 116.88 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,260,280K ÷ ($1,157,630K – $743,428K)
= 10.29
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Based on the data provided, The Ensign Group Inc's working capital turnover has shown a decline over the years. In December 31, 2020, the working capital turnover was 116.88, indicating that for every dollar of working capital, the company generated $116.88 of revenue. However, this ratio has decreased significantly to 10.29 by December 31, 2024.
This declining trend suggests that the company may be facing challenges in efficiently utilizing its working capital to generate sales. A decreasing working capital turnover ratio could indicate inefficiencies in managing inventory levels, collecting receivables, or utilizing cash resources effectively. It is crucial for The Ensign Group Inc to closely monitor and address the factors contributing to this decline to improve its working capital management and overall financial performance.
Peer comparison
Dec 31, 2024