Addus HomeCare Corporation (ADUS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.11 | 7.52 | 5.95 | 5.73 | 4.28 | |
| DSO | days | 40.08 | 48.55 | 61.36 | 63.75 | 85.30 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.11
= 40.08
The days of sales outstanding (DSO) for Addus HomeCare Corporation have shown a decreasing trend over the past five years, reflecting a more efficient collection of accounts receivable. In particular, the DSO decreased from 85.33 days in 2019 to 39.82 days in 2023, indicating a significant improvement in the company's ability to convert sales into cash.
This improvement suggests that Addus HomeCare Corporation has been successful in managing its accounts receivable more effectively, potentially through stricter credit policies or more proactive collection efforts. A lower DSO indicates that the company is able to collect payments from customers more quickly, which can enhance liquidity and cash flow.
Overall, the decreasing trend in DSO for Addus HomeCare Corporation is a positive indicator of the company's financial health and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023