US Physicalrapy Inc (USPH)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 32.10 | 32.23 | 31.78 | 33.02 | 31.30 | 32.70 | 34.12 | 36.28 | 34.27 | 33.51 | 34.94 | 35.01 | 35.22 | 34.72 | 35.10 | 38.86 | 35.85 | 33.82 | 30.17 | 32.54 |
| Number of days of payables | days | 3.96 | 4.43 | 2.95 | 3.60 | 2.94 | 3.48 | 2.90 | 3.41 | 2.73 | 3.79 | 3.35 | 3.01 | 3.16 | 1.51 | 1.86 | 2.22 | 1.47 | 1.16 | 1.90 | 2.86 |
| Cash conversion cycle | days | 28.14 | 27.80 | 28.83 | 29.42 | 28.36 | 29.21 | 31.22 | 32.87 | 31.54 | 29.72 | 31.59 | 32.00 | 32.07 | 33.20 | 33.24 | 36.64 | 34.38 | 32.66 | 28.27 | 29.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 32.10 – 3.96
= 28.14
The cash conversion cycle of US Physicalrapy Inc has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its resources invested in inventory into cash flows from sales.
US Physicalrapy Inc experienced a decreasing trend in its cash conversion cycle from 29.68 days on March 31, 2020, to 27.80 days on September 30, 2024. This indicates that the company efficiently managed its working capital during this period, reducing the time taken to convert inventory into cash.
However, there were periods where the cash conversion cycle increased, such as an uptick to 36.64 days on March 31, 2021, and a peak of 32.87 days on March 31, 2023. These increases suggest potential issues in managing inventory levels, accounts receivable, or accounts payable, causing delays in the conversion of resources into cash.
Overall, the downward trend in the cash conversion cycle from 2020 to 2024 reflects improvements in US Physicalrapy Inc's working capital management efficiency. By continuously monitoring and optimizing its cash conversion cycle, the company can enhance its liquidity position and financial performance.
Peer comparison
Dec 31, 2024