US Physicalrapy Inc (USPH)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 28.14 | 28.36 | 31.54 | 32.07 | 34.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 32.10 – 3.96
= 28.14
Based on the data provided, the cash conversion cycle of US Physicalrapy Inc has shown a consistent improvement over the past five years. The company's cash conversion cycle decreased from 34.68 days on December 31, 2020, to 28.14 days on December 31, 2024. This indicates that the company has been able to efficiently manage its working capital and convert its investments in inventory and accounts receivable into cash at a faster pace.
A decreasing cash conversion cycle signifies that US Physicalrapy Inc has been able to shorten the time it takes to sell inventory, collect receivables, and pay suppliers, resulting in a more efficient cash flow management. This improvement in the cash conversion cycle suggests better liquidity, operational efficiency, and potentially lower financing needs for the company. It also indicates that US Physicalrapy Inc has been successful in optimizing its inventory and accounts receivable management processes over the years.
Peer comparison
Dec 31, 2024