Adapthealth Corp (AHCO)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 7.25 6.72 7.20 6.13 5.35
DSO days 50.35 54.35 50.72 59.57 68.18

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.25
= 50.35

To analyze Adapthealth Corp's Days Sales Outstanding (DSO) over the years, we observe a decreasing trend, suggesting an improvement in the company's accounts receivable management.

As of December 31, 2020, the DSO stood at 68.18 days, indicating that on average, it took the company about 68 days to collect its receivables. Over the subsequent years, there was a steady decline in the DSO metric. By December 31, 2024, the DSO had reduced to 50.35 days, showcasing a more efficient collection of outstanding payments.

The decreasing trend in DSO reflects potential enhancements in the company's credit policies, collection procedures, and overall financial health. A lower DSO indicates that Adapthealth Corp has been able to collect payments more promptly, improving cash flow and liquidity. This trend suggests that the company may be effectively managing its receivables and maintaining healthier customer payment practices.