Select Medical Holdings (SEM)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,110,950 | 6,065,580 | 6,014,130 | 5,976,980 | 5,959,020 | 5,951,690 | 5,852,620 | 5,751,860 | 5,634,770 | 5,440,430 | 5,321,310 | 5,111,360 | 5,018,840 | 4,948,870 | 3,769,616 | 2,687,758 | 1,482,623 | 1,400,553 | 2,480,787 | 3,570,105 |
| Payables | US$ in thousands | 174,312 | 183,086 | 186,787 | 174,101 | 186,729 | 207,413 | 231,472 | 238,150 | 233,844 | 192,393 | 187,736 | 189,170 | 177,087 | 160,474 | 142,946 | 131,601 | 145,731 | 136,801 | 138,015 | 140,581 |
| Payables turnover | 35.06 | 33.13 | 32.20 | 34.33 | 31.91 | 28.69 | 25.28 | 24.15 | 24.10 | 28.28 | 28.34 | 27.02 | 28.34 | 30.84 | 26.37 | 20.42 | 10.17 | 10.24 | 17.97 | 25.40 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,110,950K ÷ $174,312K
= 35.06
Select Medical Holdings Corporation's payables turnover ratio has been relatively stable over the past eight quarters, averaging around 29.94. The ratio indicates that the company is efficient in managing its accounts payable, with an average of approximately 29.94 times a year. This means that, on average, Select Medical Holdings is paying off its suppliers almost 30 times a year, which suggests strong creditor management and potential favorable credit terms.
The increasing trend in payables turnover from Q2 2022 to Q4 2023 reflects an improvement in how efficiently Select Medical Holdings is managing its accounts payable. This trend indicates that the company is enhancing its ability to settle its outstanding balances with suppliers more frequently, which could lead to better relationships with vendors and potentially improved cash flow management. Overall, the consistent and relatively high payables turnover ratio suggests that Select Medical Holdings is effectively utilizing its credit terms and managing its working capital efficiently.
Peer comparison
Dec 31, 2023