US Physicalrapy Inc (USPH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 11.37 | 11.66 | 10.65 | 10.36 | 10.09 |
| Payables turnover | 92.22 | 123.98 | 133.67 | 115.62 | 246.08 |
| Working capital turnover | 31.52 | 4.61 | 21.46 | 42.36 | — |
US Physicalrapy Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.
1. Receivables turnover:
- The receivables turnover ratio indicates how many times the company collects its accounts receivable during a period.
- The ratios have been consistently increasing over the years, from 10.09 in 2020 to 11.37 in 2024.
- This improvement suggests that US Physicalrapy Inc is becoming more efficient in collecting payments from its customers.
2. Payables turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers.
- The ratio fluctuated over the years, with a significant decrease from 246.08 in 2020 to 92.22 in 2024.
- The decreasing trend may indicate that the company is taking longer to pay its suppliers, which could affect relationships with vendors.
3. Working capital turnover:
- The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate revenue.
- The ratio varied over the years, with a notable decrease from 42.36 in 2021 to 4.61 in 2023, before increasing to 31.52 in 2024.
- The significant fluctuations in this ratio may indicate changes in the company's ability to efficiently utilize its working capital.
Overall, US Physicalrapy Inc's activity ratios reflect improvements in receivables turnover and fluctuations in payables turnover and working capital turnover over the years. These trends suggest a need for closer monitoring of payment terms with suppliers and efficient management of working capital to ensure sustainable growth and profitability.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 32.10 | 31.30 | 34.27 | 35.22 | 36.16 |
| Number of days of payables | days | 3.96 | 2.94 | 2.73 | 3.16 | 1.48 |
Based on the provided data, let's analyze the activity ratios of US Physicalrapy Inc:
1. Days of Inventory on Hand (DOH): The DOH ratio for US Physicalrapy Inc is not available for the years 2020 to 2024. This indicates that the company's inventory turnover and management of inventory levels are not provided in the data.
2. Days of Sales Outstanding (DSO): The DSO ratio measures how many days it takes for a company to collect its accounts receivable. US Physicalrapy Inc's DSO decreased from 36.16 days in 2020 to 32.10 days in 2024. A decreasing trend in DSO suggests that the company is collecting its receivables more efficiently over the years.
3. Number of Days of Payables: The number of days of payables ratio indicates how long the company takes to pay its suppliers. US Physicalrapy Inc's payables period increased from 1.48 days in 2020 to 3.96 days in 2024. This suggests that the company is taking longer to pay its suppliers over the years, potentially indicating a change in payment terms or liquidity management.
In summary, while information on the inventory turnover is not available, US Physicalrapy Inc has shown improvements in its collection of receivables (DSO) but has extended the time taken to pay its payables over the years. These trends provide insights into the company's management of working capital and relationships with customers and suppliers.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 20.89 | 23.17 | 22.35 | 21.54 | 19.52 |
| Total asset turnover | 0.58 | 0.61 | 0.64 | 0.66 | 0.71 |
Long-Term Activity Ratios Analysis of US Physicalrapy Inc
1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates the efficiency of the company in generating sales from its fixed assets. A higher ratio suggests better utilization of assets.
- US Physicalrapy Inc's fixed asset turnover has shown an increasing trend over the years, from 19.52 in 2020 to 20.89 in 2024.
- The company has been able to derive more revenue from its fixed assets, indicating improved operational efficiency and effective management of its long-term assets.
2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate sales from all assets, including both fixed and current assets.
- US Physicalrapy Inc's total asset turnover ratio has decreased gradually from 0.71 in 2020 to 0.58 in 2024.
- The declining trend in total asset turnover may suggest that the company is facing challenges in efficiently utilizing its total assets to generate sales.
Overall Assessment:
- While US Physicalrapy Inc has shown a positive trend in fixed asset turnover, indicating improved efficiency in utilizing fixed assets, the decreasing trend in total asset turnover raises concerns about the company's overall asset utilization.
- Management should further analyze the factors contributing to the decline in total asset turnover and take necessary steps to enhance the efficiency of all assets to improve overall business performance and profitability.