Acadia Healthcare Company Inc (ACHC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.65 | 7.18 | 7.27 | 6.72 | 8.01 | |
| DSO | days | 54.89 | 50.83 | 50.22 | 54.31 | 45.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.65
= 54.89
To assess Acadia Healthcare Company Inc's days of sales outstanding (DSO) over the past five years, a trend analysis was conducted using the data provided. The DSO measures the average number of days a company takes to collect revenue after a sale is made.
Acadia Healthcare's DSO has shown some fluctuation over the period analyzed. In 2019, the DSO was at its lowest level of 44.07 days before increasing to 50.70 days in 2020. Subsequently, there was a slight improvement in 2021 with a DSO of 46.31 days, followed by further improvement in 2022 with 48.04 days. In 2023, the DSO decreased slightly to 49.35 days.
The fluctuation in DSO could indicate changes in Acadia Healthcare's collection efficiency or credit policies. A decreasing DSO generally suggests that the company has been collecting payments more quickly, potentially improving cash flow and liquidity. On the other hand, an increasing DSO may raise concerns about the company's ability to collect payments promptly, potentially affecting working capital.
Further analysis and comparison with industry benchmarks or competitors' DSO ratios could provide additional insights into Acadia Healthcare's performance in managing receivables and collecting sales revenue efficiently. Additionally, monitoring DSO trends over time can help identify areas for improvement in the company's credit and collection processes.
Peer comparison
Dec 31, 2023