Select Medical Holdings (SEM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.04 | 1.13 | 1.09 | 1.22 | 1.01 | 1.09 | 1.10 | 1.11 | 1.10 | 1.02 | 0.98 | 1.05 | 0.90 | 1.34 | 1.33 | 1.19 | 1.11 | 1.21 | 1.09 | 1.18 |
| Quick ratio | 0.06 | 0.15 | 0.11 | 0.11 | 0.11 | 0.14 | 0.16 | 0.13 | 0.15 | 0.14 | 0.11 | 0.12 | 0.06 | 0.56 | 0.57 | 0.49 | 0.40 | 0.48 | 0.41 | 0.09 |
| Cash ratio | 0.06 | 0.15 | 0.11 | 0.11 | 0.11 | 0.14 | 0.16 | 0.13 | 0.15 | 0.14 | 0.11 | 0.12 | 0.06 | 0.56 | 0.57 | 0.49 | 0.40 | 0.48 | 0.41 | 0.09 |
Select Medical Holdings' current ratio has fluctuated over the past few years but generally remained above 1, indicating the company has had sufficient current assets to cover its current liabilities.
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Select Medical Holdings' quick ratio has varied, showing some volatility, but generally stayed below 1 in recent years, suggesting a potential liquidity risk as the company may struggle to quickly meet its immediate payment obligations.
The cash ratio, which is the most conservative liquidity ratio, indicates the proportion of a company's current liabilities that could be paid off with its cash and cash equivalents. Select Medical Holdings' cash ratio has remained low, indicating a limited ability to cover current liabilities with cash on hand alone.
Overall, Select Medical Holdings' liquidity ratios show a mixed picture with fluctuations in the current ratio and consistently low quick and cash ratios, indicating a potential need to enhance the management of its short-term liquidity position.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 1.45 | 0.00 | 1.07 | 0.00 | 0.00 | 1.25 | 2.83 | 2.76 | 0.00 | 1.10 | 0.39 | 0.43 | 0.44 | 1.85 | 0.72 | 0.98 |
The cash conversion cycle for Select Medical Holdings fluctuated over the period analyzed. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle indicates more efficient use of resources.
From March 31, 2020, to December 31, 2020, the cash conversion cycle improved significantly from 0.98 days to 0.44 days, suggesting better management of inventory and receivables. The cycle remained low through March 31, 2021, indicating continued efficiency.
However, the cycle increased to 2.83 days by June 30, 2022, and fluctuated over the subsequent quarters. This rise could be attributed to changes in inventory management or payment terms.
By December 31, 2024, the cash conversion cycle had reduced to 0.00 days, implying a potential shift from holding large amounts of cash to a more aggressive investment strategy. This could impact liquidity management and risk exposure.
Overall, fluctuations in the cash conversion cycle for Select Medical Holdings suggest variations in operational efficiencies and working capital management strategies that may need further evaluation and monitoring.