Select Medical Holdings (SEM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,457,510 | 6,760,560 | 6,682,750 | 6,601,130 | 6,549,040 | 6,498,680 | 6,476,780 | 6,463,510 | 6,411,730 | 6,009,720 | 5,899,480 | 5,562,470 | 5,416,770 | 5,330,860 | 5,258,810 | 5,373,360 | 5,278,660 | 5,168,760 | 5,115,800 | 5,051,950 |
| Receivables | US$ in thousands | 940,335 | 944,219 | 964,680 | 997,274 | 941,312 | 909,030 | 921,623 | 941,434 | 889,303 | 898,823 | 931,179 | 959,715 | 896,763 | 842,615 | 749,245 | 816,405 | 762,677 | 798,805 | 791,769 | 779,861 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,457,510K ÷ $940,335K
= 6.87
The receivables turnover ratio measures how many times a company collects its accounts receivable during a specific period, indicating the efficiency of its credit and collection policies. Looking at the data from the past eight quarters for Select Medical Holdings Corporation, we observe some fluctuations but a relatively stable trend in the receivables turnover ratio.
Over the period analyzed, the company's receivables turnover ratio has ranged from 6.42 to 7.09, with an average around 6.80. This suggests that, on average, Select Medical Holdings collects its accounts receivable approximately 6.80 times per year. A higher turnover ratio generally indicates a more efficient management of receivables, as the company is collecting outstanding payments quickly.
The slight fluctuations in the receivables turnover ratio from quarter to quarter may be influenced by various factors such as seasonal variations in revenue, changes in credit policies, or shifts in customer payment behavior. However, the overall stability of the ratio indicates that Select Medical Holdings has been able to consistently manage its receivables effectively over the past two years.
It is important for the company to continue monitoring and managing its receivables effectively to ensure a healthy cash flow and financial stability. Analyzing trends in the receivables turnover ratio can provide valuable insights into the company's credit management practices and help identify areas for improvement.
Peer comparison
Dec 31, 2023