US Physicalrapy Inc (USPH)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 31.30 | 34.27 | 35.22 | 36.16 | 35.01 |
| Number of days of payables | days | 2.94 | 2.73 | 3.16 | 1.48 | 2.46 |
| Cash conversion cycle | days | 28.36 | 31.54 | 32.07 | 34.68 | 32.55 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 31.30 – 2.94
= 28.36
The cash conversion cycle of U.S. Physical Therapy, Inc. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to 42.08 days compared to the previous year's 45.27 days. This indicates that in 2023, the company took fewer days to convert its investments in inventory and other resources into cash from sales, which is a positive sign of efficiency in managing its working capital.
Looking further back, in 2021 and 2020, the cash conversion cycle was 46.02 days and 43.96 days, respectively. This suggests some variability in the company's ability to efficiently manage its cash flows and working capital during those years.
In 2019, the cash conversion cycle was 42.45 days, which is somewhat comparable to 2023. This implies that the company has been able to maintain a relatively consistent level of efficiency in converting its resources into cash over the years.
Overall, while there have been fluctuations in the cash conversion cycle of U.S. Physical Therapy, Inc. over the past five years, the company seems to have made some improvements in 2023, indicating a positive trend towards better managing its working capital and cash flow.
Peer comparison
Dec 31, 2023