Addus HomeCare Corporation (ADUS)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.43 | 11.71 | 10.16 | 10.32 | 9.11 | 8.44 | 9.51 | 7.72 | 7.52 | 7.30 | 7.17 | 6.24 | 5.95 | 6.12 | 5.81 | 5.55 | 5.73 | 6.24 | 5.65 | 4.96 | |
| DSO | days | 38.72 | 31.17 | 35.92 | 35.37 | 40.08 | 43.24 | 38.37 | 47.28 | 48.55 | 49.99 | 50.88 | 58.51 | 61.36 | 59.64 | 62.77 | 65.80 | 63.72 | 58.45 | 64.61 | 73.56 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.43
= 38.72
The Days Sales Outstanding (DSO) is an important metric that indicates how long it takes for a company to collect its accounts receivable. A lower DSO suggests that the company is efficient in collecting payments from its customers.
Analyzing the DSO trend of Addus HomeCare Corporation over the provided period, we observe a general decreasing trend in the DSO values. The DSO decreased from 73.56 days as of March 31, 2020, to 38.72 days as of December 31, 2024. This trend indicates that the company has been improving its accounts receivable collection efficiency over time.
Specifically, the DSO decreased to 50.88 days as of June 30, 2022, and further dropped to 31.17 days as of September 30, 2024. These substantial decreases signify that Addus HomeCare Corporation has enhanced its collection processes, leading to a quicker conversion of accounts receivable into cash.
The current DSO value of 38.72 days as of December 31, 2024, is relatively lower than the initial value, indicating that the company has been successful in managing its receivables effectively. A low DSO is a positive sign as it suggests that Addus HomeCare Corporation is promptly converting its sales into cash, which can improve its liquidity and cash flow position.
Overall, the decreasing trend in DSO for Addus HomeCare Corporation reflects the company's ability to efficiently manage its accounts receivable and underscores its financial health and operational efficiency.
Peer comparison
Dec 31, 2024