Select Medical Holdings (SEM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 1.45 | — | — | 0.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 1.45 | 0.00 | 0.00 | 0.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Select Medical Holdings has shown some fluctuations over the years. At the end of December 31, 2020, the company's cash conversion cycle was 0.44 days, indicating that it took less than a day to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, and December 31, 2022, the cash conversion cycle improved, reaching 0.00 days. This suggests that the company efficiently managed its working capital, swiftly converting its resources into cash.
However, by the end of December 31, 2023, the cash conversion cycle increased to 1.45 days, signifying a slight delay in the conversion of investments into cash compared to the previous years.
As of December 31, 2024, the cash conversion cycle returned to 0.00 days, indicating a swift conversion of assets into cash.
Overall, Select Medical Holdings has generally maintained an efficient cash conversion cycle, demonstrating effective working capital management throughout the years, with a minor fluctuation observed in 2023.
Peer comparison
Dec 31, 2024