US Physicalrapy Inc (USPH)

U.S. Physical Therapy, Inc.'s liquidity ratios have shown a fluctuating trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has exhibited significant improvement from 2019 to 2023. The current ratio increased from 1.41 in 2019 to 2.28 in 2023, indicating a stronger liquidity position.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also followed an upward trajectory, matching the current ratio figures each year. This suggests that the company has a healthy level of liquid assets to cover its short-term liabilities.

The cash ratio, representing the most stringent liquidity measure by considering only cash and cash equivalents, improved notably over the period under review. The cash ratio surged from 0.48 in 2019 to 1.60 in 2023, indicating an increasing ability to meet short-term obligations solely through cash on hand.

Overall, the liquidity ratios of U.S. Physical Therapy, Inc. reflect a strengthened liquidity position over the past five years, with notable improvements in the current, quick, and cash ratios. This suggests that the company has enhanced its ability to meet its short-term obligations and fund its operations using its liquid assets.

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Additional liquidity measure

The cash conversion cycle of U.S. Physical Therapy, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 42.08 days from 45.27 days in 2022. This suggests that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023 compared to the previous year.

The trend in the cash conversion cycle from 2021 to 2023 shows a slight improvement, as the cycle decreased from 46.02 days in 2021 to 42.08 days in 2023. This indicates that the company managed its operating cycle more effectively over this period, which could be attributed to better inventory management and collection of accounts receivable.

Comparing the most recent data to that of 2019, where the cash conversion cycle was 42.45 days, the company has been able to maintain a relatively stable cycle over the past few years, with minor fluctuations. This consistency can be a positive sign of operational efficiency and liquidity management within the company.

Overall, the downward trend in the cash conversion cycle for U.S. Physical Therapy, Inc. indicates an improvement in the company's ability to efficiently generate cash from its operations, manage its working capital, and convert its investments into cash.