US Physicalrapy Inc (USPH)

Cash conversion cycle

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days
Days of sales outstanding (DSO) days 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 35.01 35.90 34.57 38.23
Number of days of payables days 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 2.46 2.96 2.61 2.16
Cash conversion cycle days 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 32.55 32.94 31.96 36.07

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 fluctuated over the past eight quarters, ranging from a low of 42.08 days in Q4 2023 to a high of 48.01 days in Q2 2022. Overall, the company seems to have effectively managed its cash conversion cycle, as it has generally stayed below 50 days during this period.

The trend indicates that the company has been able to efficiently turn its investments in inventory and accounts receivable into cash. A lower cash conversion cycle suggests that the company is able to generate cash quickly from its operational activities.

However, it is important for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow and liquidity management. By maintaining a shorter cash conversion cycle, U.S. Physical Therapy, Inc. can potentially improve its working capital management and overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
US Physicalrapy Inc
USPH
28.36
Privia Health Group Inc
PRVA
61.70