Select Medical Holdings (SEM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,110,950 | 5,959,020 | 5,634,770 | 5,054,070 | 4,982,040 |
| Payables | US$ in thousands | 174,312 | 186,729 | 233,844 | 177,087 | 145,731 |
| Payables turnover | 35.06 | 31.91 | 24.10 | 28.54 | 34.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,110,950K ÷ $174,312K
= 35.06
The payables turnover ratio for Select Medical Holdings Corporation has fluctuated over the past five years. The company's ability to efficiently manage its payments to suppliers and creditors has shown an improving trend from 2021 to 2023, with the ratio increasing from 22.60 to 32.88. This indicates that the company is paying its suppliers more frequently within each year, which could signify effective cash flow management and possibly maintaining good relationships with its suppliers.
However, it's important to note that a higher payables turnover ratio may also suggest that the company is possibly stretching its payment terms with suppliers, which could impact relationships in the long term. Overall, a higher payables turnover ratio is generally viewed positively, as it reflects better working capital management and liquidity.
Peer comparison
Dec 31, 2023