Select Medical Holdings (SEM)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,212,990 | 1,050,290 | 1,028,060 | 1,052,880 |
| Total current liabilities | US$ in thousands | 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 | 914,280 | 869,787 | 852,692 | 884,937 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,457,510K ÷ ($1,257,650K – $1,248,460K)
= 702.67
The working capital turnover ratio for Select Medical Holdings Corporation has shown significant fluctuations over the past eight quarters. In Q4 2023, the working capital turnover ratio spiked to 725.14, indicating a substantial increase in efficiency in utilizing working capital to generate revenue. This surge in the ratio suggests that the company was able to generate a high level of sales relative to its working capital investment during that period.
Comparatively, in the preceding quarters, the working capital turnover ratio was relatively lower. This decline in Q3 2023 and Q2 2023 suggests that the company may have experienced difficulty in efficiently utilizing its working capital to drive revenue generation during those periods.
The working capital turnover ratio in Q1 2023 was higher than in the previous two quarters but lower than Q4 2022. This indicates a moderate improvement in efficiency in utilizing working capital to generate revenue compared to the earlier quarters.
The working capital turnover ratio for Q4 2022 was 54.52, which was lower than the exceptional performance in Q4 2023. This suggests that there may have been fluctuations in the company's working capital management strategy between these two quarters.
Overall, the working capital turnover ratio for Select Medical Holdings Corporation has shown variability over the analyzed periods, indicating fluctuations in the company's efficiency in utilizing working capital to drive sales. Additional analysis and trend monitoring may be useful to understand the company's working capital management performance.
Peer comparison
Dec 31, 2023