Select Medical Holdings (SEM)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,187,103 | 6,968,550 | 6,873,020 | 6,787,890 | 6,664,060 | 6,586,660 | 6,488,760 | 6,398,970 | 6,333,540 | 6,311,890 | 6,278,320 | 6,257,600 | 6,204,510 | 6,105,190 | 5,994,840 | 5,663,540 | 5,531,710 | 5,445,800 | 5,415,270 | 5,543,910 |
| Total current assets | US$ in thousands | 1,019,780 | 1,404,200 | 1,365,090 | 1,440,340 | 1,257,650 | 1,276,090 | 1,304,480 | 1,313,730 | 1,271,310 | 1,217,250 | 1,221,050 | 1,250,850 | 1,139,440 | 1,779,340 | 1,868,170 | 1,835,310 | 1,594,000 | 1,624,130 | 1,363,330 | 998,030 |
| Total current liabilities | US$ in thousands | 977,651 | 1,245,700 | 1,257,000 | 1,184,380 | 1,248,460 | 1,166,060 | 1,188,210 | 1,185,710 | 1,155,150 | 1,196,740 | 1,241,740 | 1,189,150 | 1,273,080 | 1,326,370 | 1,409,030 | 1,540,250 | 1,438,370 | 1,345,490 | 1,255,970 | 843,954 |
| Working capital turnover | 123.12 | 43.97 | 63.59 | 26.52 | 725.14 | 59.86 | 55.81 | 49.98 | 54.52 | 307.75 | — | 101.42 | — | 13.48 | 13.06 | 19.19 | 35.54 | 19.54 | 50.44 | 35.98 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,187,103K ÷ ($1,019,780K – $977,651K)
= 123.12
The working capital turnover ratio for Select Medical Holdings shows how efficiently the company is utilizing its working capital to generate revenue.
From March 31, 2020, to June 30, 2020, the ratio increased significantly from 35.98 to 50.44, indicating a more efficient use of working capital during this period. However, there was a notable decrease in the ratio to 19.54 by September 30, 2020, which suggests a potential decrease in operational efficiency or changes in working capital management.
The ratio improved again to 35.54 by December 31, 2020, before dropping to 19.19 by March 31, 2021. This fluctuation indicates inconsistency in the management of working capital during this period.
From March 31, 2022, to September 30, 2022, there was a significant increase in the working capital turnover ratio, soaring from 101.42 to 307.75. This spike suggests a more effective utilization of working capital to generate revenue during this period.
Overall, the working capital turnover ratio for Select Medical Holdings has shown fluctuations over the analyzed period, indicating varying levels of efficiency in utilizing working capital. The company should continue to monitor and improve its working capital management practices to ensure sustained operational efficiency and financial performance.
Peer comparison
Dec 31, 2024