Addus HomeCare Corporation (ADUS)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.44 | 9.11 | 7.52 | 5.95 | 5.73 | |
| DSO | days | 38.64 | 40.08 | 48.55 | 61.36 | 63.75 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.44
= 38.64
Based on the data provided, Addus HomeCare Corporation's days of sales outstanding (DSO) have shown a decreasing trend over the past five years, declining from 63.75 days as of December 31, 2020, to 38.64 days as of December 31, 2024. This decreasing trend indicates that the company has been able to collect its accounts receivable more efficiently over time.
A lower DSO is generally favorable as it suggests that the company is collecting payments from its customers more quickly, which can improve cash flow and working capital management. The declining DSO for Addus HomeCare Corporation may be attributed to improved credit policies, enhanced collection procedures, or a shift towards customers with better payment terms.
The decreasing trend in DSO is a positive indicator of the company's financial health and operational efficiency. However, it is important to monitor DSO along with other financial metrics to gain a comprehensive understanding of Addus HomeCare Corporation's overall performance and liquidity position.
Peer comparison
Dec 31, 2024