Acadia Healthcare Company Inc (ACHC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.65 | 5.39 | 6.60 | 6.24 | 7.18 | 6.83 | 7.13 | 6.88 | 7.27 | 7.12 | 7.18 | 8.68 | 9.69 | 8.46 | 8.44 | 8.11 | 8.13 | 7.57 | 7.72 | 8.04 | |
| DSO | days | 54.89 | 67.73 | 55.29 | 58.48 | 50.83 | 53.43 | 51.20 | 53.05 | 50.22 | 51.23 | 50.82 | 42.05 | 37.68 | 43.15 | 43.25 | 45.00 | 44.88 | 48.21 | 47.30 | 45.37 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.65
= 54.89
To analyze Acadia Healthcare Company Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuation in the DSO values. In Q4 2023, the DSO stood at 49.35 days, indicating that on average, it takes approximately 49.35 days for the company to collect its accounts receivable. This represents an improvement compared to the previous quarter, where the DSO was 61.15 days.
Looking back at the trend, there has been variability in DSO over the quarters, with peaks and troughs alternating. This variability suggests that Acadia Healthcare Company Inc may have experienced challenges in managing its accounts receivable collection efficiently.
It is essential for the company to focus on reducing DSO to ensure a healthy cash flow cycle and efficient management of working capital. By monitoring and analyzing DSO consistently, Acadia Healthcare can improve its collection processes, strengthen relationships with customers, and enhance overall financial performance.