Select Medical Holdings (SEM)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 268.90 — 364.21 — — 309.55 137.25 141.11 — 351.90 982.34 903.55 882.67 210.27 409.56 212.74 — 74.48 201.40 463.11
Receivables turnover 6.87 7.16 6.93 6.62 6.96 7.15 7.03 6.87 7.21 6.69 6.34 5.80 6.04 6.33 7.02 6.58 6.92 6.47 6.46 6.48
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
Working capital turnover 702.67 61.44 57.48 51.56 56.38 316.85 — 104.76 — 13.27 12.85 18.85 34.81 19.13 48.98 34.87 17.67 28.64 29.17 30.08

The activity ratios of Select Medical Holdings Corporation provide insights into how efficiently the company is managing its resources and operations.

1. Receivables Turnover: This ratio measures how quickly the company collects payments from its customers. A higher turnover indicates that the company is efficient in converting credit sales into cash. Select Medical's receivables turnover has been relatively stable over the quarters, ranging from 6.42 to 7.09, showing consistent collection of receivables.

2. Payables Turnover: This ratio reflects how efficiently the company pays its suppliers. A higher ratio suggests that the company is taking longer to pay its suppliers, which could indicate strong bargaining power or efficient cash management. Select Medical's payables turnover has been increasing gradually from 22.67 to 32.88, indicating a lengthening of the payment period to suppliers.

3. Working Capital Turnover: This ratio measures how effectively a company utilizes its working capital to generate revenue. A higher turnover indicates that the company is generating more revenue relative to its working capital. Select Medical's working capital turnover has been fluctuating significantly, with a notable spike in Q4 2023 to 725.14, which may signal improved operational efficiency or increased revenue generation capacity during that period.

Overall, the activity ratios of Select Medical Holdings Corporation suggest that the company is effectively managing its receivables, extending its payables turnover, and enhancing its working capital utilization in certain quarters. These results may indicate improvements in operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 1.36 — 1.00 — — 1.18 2.66 2.59 — 1.04 0.37 0.40 0.41 1.74 0.89 1.72 — 4.90 1.81 0.79
Days of sales outstanding (DSO) days 53.15 50.98 52.69 55.14 52.46 51.06 51.94 53.16 50.63 54.59 57.61 62.97 60.43 57.69 52.00 55.46 52.74 56.41 56.49 56.34
Number of days of payables days 10.41 11.02 11.34 10.63 11.44 12.72 14.44 15.11 15.15 12.91 12.88 13.51 12.88 11.84 13.84 17.87 35.88 35.65 20.31 14.37

Days of inventory on hand (DOH) data is not available for Select Medical Holdings Corporation across the quarters from Q1 2022 to Q4 2023.

Days of sales outstanding (DSO) have been relatively stable over the past eight quarters, ranging from 51.50 days to 56.88 days. This indicates that the company takes, on average, about 51.50 to 56.88 days to collect payments from customers for sales made.

The number of days of payables has shown fluctuation but generally trended downwards from Q1 2022 to Q4 2023. The range has been from 11.10 days to 16.10 days, signaling that the company takes, on average, 11.10 to 16.10 days to pay its suppliers.

Overall, the data suggests that Select Medical Holdings Corporation has been managing its activity ratios reasonably well, with stable DSO and decreasing days of payables, which could indicate effective management of cash flow and working capital.

Long-term

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
Fixed asset turnover 6.31 6.71 6.65 6.69 6.54 6.79 6.78 6.78 6.67 6.42 6.36 5.98 5.74 5.74 5.48 5.49 5.29 5.18 5.07 5.19
Total asset turnover 0.84 0.88 0.87 0.86 0.85 0.86 0.86 0.86 0.87 0.76 0.74 0.70 0.71 0.70 0.70 0.76 0.72 0.72 0.72 0.72

The fixed asset turnover ratio for Select Medical Holdings Corporation has been relatively stable over the past eight quarters, ranging between 6.32 and 6.59. This indicates that the company is generating approximately $6.32 to $6.59 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also been consistent, varying from 0.83 to 0.87 during the same period. This suggests that the company is generating $0.83 to $0.87 in revenue for every dollar of total assets it holds.

Overall, the consistent and relatively high fixed asset turnover ratios signify that Select Medical Holdings Corporation is efficiently utilizing its fixed assets to generate revenue. Additionally, the stable total asset turnover ratios indicate that the company is effectively leveraging its total assets to generate sales.