The Ensign Group Inc (ENSG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 0.67 | — | — |
| Days of sales outstanding (DSO) | days | 48.83 | 47.57 | 49.27 | 45.67 | 46.34 |
| Number of days of payables | days | 10.02 | 10.57 | 11.19 | 9.76 | 9.29 |
| Cash conversion cycle | days | 38.81 | 37.01 | 38.76 | 35.91 | 37.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 48.83 – 10.02
= 38.81
The cash conversion cycle of The Ensign Group Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 37.05 days, which decreased slightly to 35.91 days by December 31, 2021. However, by December 31, 2022, the cash conversion cycle increased to 38.76 days before slightly decreasing to 37.01 days by December 31, 2023. The cycle then increased again to 38.81 days by December 31, 2024.
Overall, the trend indicates some variability in the company's ability to convert its investments in inventory and accounts receivable into cash. The management should continue monitoring and managing this cycle effectively to ensure optimal use of the company's resources.
Peer comparison
Dec 31, 2024