Adapthealth Corp (AHCO)
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 | 6.72 | 7.21 | 7.32 | 7.52 | 7.20 | 5.57 | 5.34 | 4.87 | 4.36 | 4.59 | 4.13 | 3.50 | 3.60 | 4.92 | 4.97 | 4.10 | 5.60 | — | — | — | |
| DSO | days | 54.35 | 50.61 | 49.83 | 48.51 | 50.72 | 65.54 | 68.39 | 74.87 | 83.68 | 79.52 | 88.41 | 104.25 | 101.31 | 74.11 | 73.49 | 89.01 | 65.22 | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.72
= 54.35
To analyze AdaptHealth Corp's Days Sales Outstanding (DSO) over the past several quarters, we observe a general trend of decreasing DSO from Q1 2022 to Q1 2023, indicating an improvement in the company's ability to collect its accounts receivable in a timely manner.
Specifically, the DSO decreased from 50.40 days in Q1 2022 to 42.85 days in Q1 2023, reflecting a positive trend in the company's accounts receivable management. This can suggest that AdaptHealth Corp is becoming more efficient in collecting payments from its customers, which may lead to improved cash flows and working capital management.
Despite some fluctuations in DSO over the quarters, the overall downward trend is a positive indicator for the company's financial performance and liquidity. It implies that AdaptHealth Corp is potentially strengthening its credit control processes and enhancing its relationship with customers to expedite payment collections.
Further monitoring and analysis of DSO trends will be essential to assess the company's effectiveness in managing its accounts receivable and maintaining healthy cash flow in the future.
Peer comparison
Dec 31, 2023