US Physicalrapy Inc (USPH)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 604,802 | 591,183 | 580,778 | 569,949 | 553,144 | 541,795 | 528,086 | 514,358 | 495,022 | 488,399 | 469,431 | 426,360 | 426,709 | 425,613 | 435,939 | 478,455 | 481,969 | 479,009 | 474,301 | 462,481 |
| Total current assets | US$ in thousands | 233,375 | 228,499 | 241,799 | 117,794 | 111,266 | 112,892 | 121,846 | 95,843 | 95,166 | 79,424 | 79,699 | 75,798 | 87,636 | 82,644 | 92,139 | 148,672 | 85,386 | 92,534 | 107,009 | 81,156 |
| Total current liabilities | US$ in thousands | 102,185 | 82,356 | 85,816 | 90,833 | 85,489 | 81,488 | 85,105 | 89,020 | 83,481 | 81,668 | 75,379 | 90,825 | 93,492 | 93,200 | 87,353 | 71,149 | 60,563 | 62,798 | 57,020 | 68,930 |
| Working capital turnover | 4.61 | 4.05 | 3.72 | 21.14 | 21.46 | 17.25 | 14.37 | 75.39 | 42.36 | — | 108.66 | — | — | — | 91.09 | 6.17 | 19.42 | 16.11 | 9.49 | 37.83 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $604,802K ÷ ($233,375K – $102,185K)
= 4.61
Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is efficiently using its current assets to support its operations and sales.
In the case of U.S. Physical Therapy, Inc., the working capital turnover ratio has fluctuated over the quarters provided. In Q4 2023, the ratio was 4.61, which indicates that the company generated $4.61 in revenue for every dollar of working capital invested. This ratio has been gradually increasing from Q2 2023 to Q4 2023, suggesting improved efficiency in utilizing working capital.
Comparing Q4 2023 to earlier quarters, the working capital turnover ratio is significantly lower than in Q1 and Q2 2022, where it was unusually high (21.14 and 21.46, respectively). These high ratios could be indicative of specific events or accounting adjustments that may have distorted the ratios in those quarters.
Overall, the increasing trend in the working capital turnover ratio for U.S. Physical Therapy, Inc. from Q2 2023 to Q4 2023 suggests that the company has been managing its working capital more effectively to support its revenue generation activities. However, it is important to consider the company's specific circumstances and industry benchmarks for a more comprehensive evaluation of its working capital efficiency.
Peer comparison
Dec 31, 2023