US Physicalrapy Inc (USPH)

Short-term

Turnover ratios

The analysis of U.S. Physical Therapy, Inc.'s activity ratios reveals the following trends:

1. Receivables Turnover:
The receivables turnover measures how efficiently the company collects outstanding receivables from customers. U.S. Physical Therapy, Inc. has shown a relatively consistent performance in this area over the past five years, with a range of 7.93 to 8.67. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is positive for its cash flow and liquidity.

2. Payables Turnover:
The payables turnover ratio, which was reported as 0.00 for each year, indicates that the company has not disclosed its payables turnover ratio. This could be due to various reasons such as industry norms, business strategies, or accounting practices.

3. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. U.S. Physical Therapy, Inc. demonstrates significant fluctuations in this ratio, ranging from 4.61 to 42.36 over the past three years. A higher turnover ratio suggests that the company is effectively using its resources to generate revenue, although a drastic increase could also indicate a change in business operations or financial management strategies.

In conclusion, while U.S. Physical Therapy, Inc. shows solid performance in receivables turnover, the lack of information on payables turnover and the significant variability in working capital turnover may warrant further investigation to assess the company's overall efficiency and operational effectiveness.

---

Average number of days

Days of Sales Outstanding (DSO) measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates more efficient collection of receivables. U.S. Physical Therapy, Inc. has shown a downward trend in DSO over the past five years, from 42.45 days in 2019 to 42.08 days in 2023. This suggests that the company has been improving its accounts receivable collection efficiency.

Days of Inventory on Hand (DOH) measures how long it takes for a company to sell its inventory. Unfortunately, there is no data available for U.S. Physical Therapy, Inc.'s DOH for the years provided, making it challenging to assess the company's inventory turnover efficiency.

Number of Days of Payables measures how long it takes for a company to pay its suppliers. However, data for this ratio for U.S. Physical Therapy, Inc. is not available for the years provided, which limits our ability to analyze the company's payment practices to its suppliers.

---

Long-term

Long-term activity ratios provide insights into how efficiently a company utilizes its assets to generate sales.

Fixed asset turnover for U.S. Physical Therapy, Inc. has been consistently high over the past five years, with a slight fluctuation but generally showing an upward trend. This indicates that the company is effectively using its fixed assets to generate revenue, as reflected in the high turnover ratios.

In contrast, total asset turnover has shown a declining trend over the same period. The decreasing total asset turnover suggests that the company may be experiencing challenges in efficiently utilizing all of its assets, both fixed and current, to generate sales. A lower total asset turnover may reflect the company's increasing investment in assets relative to its sales.

Overall, despite the decline in total asset turnover, the high and improving fixed asset turnover indicates that U.S. Physical Therapy, Inc. is effectively managing and utilizing its fixed assets to drive revenue generation, which is a positive sign for the company's operational efficiency and profitability.