Select Medical Holdings (SEM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,187,100 | 6,664,060 | 6,333,540 | 6,204,520 | 5,531,710 |
| Total current assets | US$ in thousands | 1,019,780 | 1,257,650 | 1,271,310 | 1,139,440 | 1,594,000 |
| Total current liabilities | US$ in thousands | 977,651 | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 |
| Working capital turnover | 123.12 | 725.14 | 54.52 | — | 35.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,187,100K ÷ ($1,019,780K – $977,651K)
= 123.12
Select Medical Holdings' working capital turnover has shown significant fluctuations over the years. In 2020, the working capital turnover was 35.54, suggesting that the company generated $35.54 in revenue for each dollar of working capital during that period.
In 2021, the data is unavailable ("—"), indicating a lack of specific information for that year.
The working capital turnover improved substantially in 2022, reaching 54.52, indicating that the company was able to generate $54.52 in revenue for each dollar of working capital invested. This increase represents a positive trend in the efficiency of the company's working capital management.
By 2023, the working capital turnover surged to 725.14, signaling a remarkable increase in the company's ability to generate revenue relative to its working capital. This substantial jump may indicate improved operational efficiency or a shift in business strategies positively impacting performance.
However, in 2024, the working capital turnover decreased to 123.12, though still significantly higher than previous years. This decline suggests some fluctuation in the company's working capital efficiency compared to the exceptional performance in the previous year.
Overall, the working capital turnover analysis reflects varying levels of efficiency in utilizing working capital to generate revenue over the years, demonstrating the importance of monitoring and managing working capital effectively to drive financial performance.
Peer comparison
Dec 31, 2024