Select Medical Holdings (SEM)

Liquidity ratios

	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
Current ratio	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	1.33	1.21	1.21	1.19
Quick ratio	0.87	0.95	0.97	0.97	0.96	0.90	0.85	0.90	0.76	1.24	1.23	1.11	1.02	1.10	1.00	1.05	1.20	1.07	1.07	1.05
Cash ratio	0.11	0.14	0.16	0.13	0.15	0.14	0.11	0.11	0.06	0.56	0.57	0.49	0.40	0.48	0.41	0.09	0.37	0.16	0.15	0.17

The liquidity ratios of Select Medical Holdings Corporation, as evidenced by the current ratio, quick ratio, and cash ratio, have remained relatively stable over the past eight quarters.

The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has fluctuated within a narrow range between 1.01 and 1.11. While a current ratio of around 1 indicates that the company can just meet its short-term liabilities with its current assets, the consistency of this ratio suggests that Select Medical has maintained a relatively stable liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained consistent at around 1.01 to 1.11. This indicates that the company has a solid ability to cover its immediate liabilities without relying on inventory sales.

The cash ratio, which focuses exclusively on the most liquid assets, such as cash and cash equivalents, has shown slightly more variability but generally ranges between 0.24 and 0.29. This ratio indicates that Select Medical has a modest level of cash reserves relative to its current liabilities.

Overall, the liquidity ratios of Select Medical Holdings Corporation show a stable and satisfactory liquidity position, with the company maintaining the ability to meet its short-term obligations without significant strain on its resources.

Additional liquidity measure

		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
Cash conversion cycle	days	44.10	39.96	42.36	44.51	41.03	39.51	40.16	40.64	35.48	42.72	45.11	49.87	47.96	47.59	39.05	39.30	16.86	25.66	38.00	42.76

The cash conversion cycle of Select Medical Holdings Corporation has shown some fluctuations over the past eight quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q1 2022, the cash conversion cycle was at its lowest point at 38.21 days, indicating that the company was efficiently managing its inventory and collecting cash from sales relatively quickly. However, in Q1 2023, the cash conversion cycle increased to 45.56 days, which suggests a longer time to convert investments into cash.

Overall, the company's cash conversion cycle has fluctuated between 38.21 days and 45.56 days over the eight quarters analyzed. It is essential for Select Medical Holdings Corporation to closely monitor and manage its cash conversion cycle to ensure efficient working capital management and optimize its cash flows.