US Physicalrapy Inc (USPH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 671,345 | 604,802 | 553,144 | 495,022 | 422,969 |
| Total current assets | US$ in thousands | 137,583 | 233,375 | 111,266 | 95,166 | 87,636 |
| Total current liabilities | US$ in thousands | 116,283 | 102,185 | 85,489 | 83,481 | 93,492 |
| Working capital turnover | 31.52 | 4.61 | 21.46 | 42.36 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $671,345K ÷ ($137,583K – $116,283K)
= 31.52
Based on the data provided, the working capital turnover of US Physicalrapy Inc has exhibited fluctuating trends over the past five years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In December 31, 2020, the working capital turnover ratio was not available ("—"), indicating a lack of data for that period. However, in December 31, 2021, the ratio was 42.36, suggesting that for every dollar of working capital invested, the company generated $42.36 in sales.
Subsequently, in December 31, 2022, the working capital turnover ratio decreased to 21.46, signifying a lower efficiency in utilizing working capital to generate sales revenue. This decline could indicate potential management issues in working capital management or changes in the business environment impacting operations.
The ratio further dropped significantly to 4.61 by December 31, 2023, reflecting a considerable decline in the company's ability to convert working capital into sales. This sharp decrease may raise concerns about liquidity and operational efficiency.
However, by December 31, 2024, the working capital turnover ratio had improved to 31.52, indicating a recovery in the efficiency of utilizing working capital to generate sales revenue. This rebound could be a result of strategic initiatives implemented by the company to enhance its working capital management practices.
Overall, the fluctuating trends in the working capital turnover ratio of US Physicalrapy Inc highlight the importance of monitoring and managing working capital effectively to support sustainable business operations and financial performance.
Peer comparison
Dec 31, 2024