Select Medical Holdings (SEM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,457,510 | 6,549,040 | 6,411,890 | 5,748,680 | 5,539,610 |
| Total current assets | US$ in thousands | 1,257,650 | 1,271,310 | 1,139,440 | 1,594,000 | 1,212,990 |
| Total current liabilities | US$ in thousands | 1,248,460 | 1,155,150 | 1,273,080 | 1,438,370 | 914,280 |
| Working capital turnover | 702.67 | 56.38 | — | 36.94 | 18.55 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,457,510K ÷ ($1,257,650K – $1,248,460K)
= 702.67
The working capital turnover of Select Medical Holdings Corporation has exhibited significant fluctuations over the years, indicating varying efficiency in utilizing its working capital. In 2019, the working capital turnover was 18.26, showing a relatively low efficiency in converting working capital into revenue. By 2020, there was an improvement as the turnover increased to 35.54, indicating a better utilization of working capital. The significant spike in 2022 to 54.52 suggests a notable enhancement in efficiency. This was further accelerated in 2023, with a substantial increase to 725.14, reflecting a significant improvement in the company's ability to generate revenue per unit of working capital. The substantial increase from 2022 to 2023 suggests a potentially more streamlined operation or effective management of working capital, leading to a higher turnover rate.
Peer comparison
Dec 31, 2023