The Ensign Group Inc (ENSG)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,731,458 | 3,554,106 | 3,388,158 | 3,200,096 | 3,026,034 | 2,910,738 | 2,808,673 | 2,713,098 | 2,627,461 | 2,566,044 | 2,496,870 | 2,442,374 | 2,402,596 | 2,093,511 | 2,091,399 | 2,076,776 | 2,032,067 | 2,250,949 | 2,161,856 | 3,084,516 |
| Total current assets | US$ in thousands | 1,046,930 | 994,347 | 927,635 | 830,497 | 781,125 | 726,848 | 682,682 | 633,111 | 639,709 | 668,118 | 567,104 | 513,316 | 582,956 | 526,627 | 547,306 | 433,321 | 411,081 | 393,201 | 375,546 | 357,729 |
| Total current liabilities | US$ in thousands | 734,747 | 671,797 | 618,989 | 585,277 | 582,072 | 567,040 | 531,924 | 513,558 | 523,068 | 483,109 | 460,986 | 443,020 | 562,399 | 525,202 | 581,038 | 330,143 | 343,173 | 354,629 | 327,348 | 311,443 |
| Working capital turnover | 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 | 29.92 | 58.36 | 44.85 | 66.64 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,731,458K ÷ ($1,046,930K – $734,747K)
= 11.95
The working capital turnover of Ensign Group Inc has exhibited a declining trend over the past eight quarters. From a high of 22.70 in Q1 2022, the ratio has steadily decreased to 11.95 in Q4 2023. This indicates that the company's efficiency in utilizing its working capital to generate revenue has been diminishing over time.
A working capital turnover ratio below 1 suggests that the company may be inefficient in utilizing its working capital to support its operations and generate sales. Ensign Group's ratios have consistently been well above 1, indicating that the company has been effectively utilizing its working capital to drive revenue generation.
However, the significant decline in the ratio from Q1 2022 to Q4 2023 warrants further investigation into potential changes in the company's operations, management of working capital, or revenue generation strategies. It may be indicative of challenges or inefficiencies that have emerged within the business during this period, which could impact its overall financial performance and profitability.
Peer comparison
Dec 31, 2023