AMN Healthcare Services Inc (AMN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.94	7.60	5.00	6.08	6.20
DSO	days	61.45	48.04	72.97	60.03	58.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.94
= 61.45

AMN Healthcare Services Inc. has demonstrated a fluctuating trend in its Days of Sales Outstanding (DSO) over the past five years. The DSO represents the average number of days it takes a company to collect payment after making a sale.

In 2023, the DSO figure stood at 71.91 days, showing an increase from the prior year. This implies that the company takes approximately 71.91 days to convert its sales into cash receipts.

Comparing to 2022, the DSO increased by about 5.55 days, indicating that the collection period on sales has lengthened. This could be due to various factors such as changes in customer payment behavior, extended credit terms, or difficulties in collections.

In 2021, the DSO spiked significantly to 94.25 days, which was the highest figure among the five years presented. This sharp increase may suggest challenges in collecting payments promptly, leading to a longer cash conversion cycle.

The DSO improved in 2020 to 69.64 days, indicating a more efficient collection process compared to the previous year. This suggests that the company was able to accelerate its cash collection efforts during this period.

In 2019, the DSO was relatively consistent with the current year, standing at 70.86 days. This stability could indicate that the company maintained a consistent approach to managing its accounts receivable and collections.

Overall, AMN Healthcare Services Inc. should continue to monitor and manage its DSO effectively to ensure optimal cash flow and timely receipt of payments from customers. A lower DSO typically indicates efficient accounts receivable management, while a higher DSO may signal potential issues that need addressing.