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.