US Physicalrapy Inc (USPH)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.18 | 2.28 | 1.30 | 1.14 | 0.94 |
| Quick ratio | 0.86 | 2.03 | 1.01 | 0.91 | 0.80 |
| Cash ratio | 0.36 | 1.52 | 0.40 | 0.34 | 0.35 |
US Physicalrapy Inc has shown improvement in its liquidity position over the years based on its liquidity ratios. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has been fluctuating but generally trending upwards. It increased from 0.94 in 2020 to 1.18 in 2024, indicating that the company's current assets have been increasing relative to its current liabilities.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also displays a similar pattern of improvement. It rose from 0.80 in 2020 to 0.86 in 2024, indicating a strengthening ability to meet short-term obligations without relying on inventory.
Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown significant improvement. It increased from 0.35 in 2020 to 0.36 in 2024, with a notable spike to 1.52 in 2023, indicating the company has a solid cash reserve to meet its short-term obligations.
Overall, US Physicalrapy Inc's liquidity ratios show a positive trend, with improvements in the current ratio, quick ratio, and cash ratio over the years, indicating a stronger ability to meet its short-term financial obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 28.14 | 28.36 | 31.54 | 32.07 | 34.68 |
US Physicalrapy Inc's cash conversion cycle has shown a positive trend over the past five years. The company's cash conversion cycle decreased from 34.68 days as of December 31, 2020, to 28.14 days as of December 31, 2024. This indicates that the company has been able to manage its working capital more efficiently over this period.
A lower cash conversion cycle implies that the company is able to convert its investment in inventory into cash more quickly, which is a positive sign of effective inventory management and sales collection processes. It can also suggest that the company is able to negotiate favorable credit terms with its suppliers while maintaining efficient collections from its customers.
Overall, the decreasing trend in US Physicalrapy Inc's cash conversion cycle demonstrates improved liquidity and operational efficiency, which can positively impact the company's financial performance and cash flow management.