Select Medical Holdings (SEM)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 35.06 | 31.91 | 24.10 | 28.54 | 34.19 | |
| Number of days of payables | days | 10.41 | 11.44 | 15.15 | 12.79 | 10.68 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 35.06
= 10.41
Based on the historical trend of Select Medical Holdings Corporation's number of days of payables, there has been a fluctuation in the efficiency of the company's accounts payable management over the past five years. The number of days of payables decreased from 16.15 days in 2021 to 11.10 days in 2023, indicating an improvement in the company's ability to pay off its short-term obligations to suppliers.
A lower number of days of payables implies that the company is paying its suppliers more quickly, which can be beneficial in terms of maintaining good relationships with vendors and potentially negotiating better payment terms in the future. However, a significant decrease in the number of days of payables may also indicate a more aggressive approach to managing working capital, which could potentially strain liquidity if not managed carefully.
Overall, the decreasing trend in Select Medical Holdings Corporation's number of days of payables suggests an improvement in accounts payable efficiency, but it is important for the company to strike a balance between prompt payment to suppliers and maintaining a healthy level of working capital to support its operations.
Peer comparison
Dec 31, 2023