Amedisys Inc (AMED)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.81 | 7.19 | 0.01 | 0.09 | 8.09 | |
| DSO | days | 53.56 | 50.76 | 26,872.86 | 4,020.20 | 45.09 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.81
= 53.56
Amedisys Inc.'s Days Sales Outstanding (DSO) has shown a slightly increasing trend over the past five years. In 2023, the DSO stood at 51.15 days, rising from 48.73 days in 2022, which itself was higher than the 45.33 days recorded in 2021. This indicates that the company took longer to convert its accounts receivable into cash from sales in 2023 compared to the previous years.
While Amedisys Inc.'s DSO has shown an upward trend, it is important to note that the company's ability to collect payments from customers within a reasonable timeframe is crucial for its cash flow management. A higher DSO may suggest potential issues with collections or extending credit terms, which can impact the company's liquidity and working capital.
Further analysis of the underlying reasons for the increasing DSO trend, such as changes in customer payment behavior, credit policies, or operational efficiency, would be necessary to fully understand the implications for Amedisys Inc.'s financial performance and potential areas for improvement.
Peer comparison
Dec 31, 2023