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 | ||
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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