Addus HomeCare Corporation (ADUS)
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 | 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 | 4.30 | 4.31 | 4.20 | 4.53 | |
| DSO | days | 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 | 84.92 | 84.75 | 86.80 | 80.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.11
= 40.08
The Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that the company is collecting payments more quickly, which is generally positive as it indicates efficient management of accounts receivable.
Analyzing Addus HomeCare Corporation's DSO over the past eight quarters, we can observe some fluctuations. In Q4 2023, the DSO was 39.82 days, which decreased compared to Q3 2023 (43.15 days) and Q1 2023 (47.13 days). This improvement suggests that the company may have been more effective in collecting payments in the most recent quarter.
Looking at the trend over the past year, the DSO has generally been decreasing from Q1 2022 (58.60 days) to Q4 2023 (39.82 days), indicating a positive direction in accounts receivable management. However, it is important to note that the DSO was relatively higher in the earlier quarters of 2022, peaking at 50.85 days in Q2 2022.
Overall, the decreasing trend in DSO over the past year is a positive sign, as it suggests that Addus HomeCare Corporation has been improving its collection process and managing its accounts receivable more efficiently. Further monitoring of DSO trends will be crucial to ensure continued effectiveness in managing cash flows and working capital.
Peer comparison
Dec 31, 2023