Astrana Health Inc (ASTH)
Days of sales outstanding (DSO)
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 802.19 | 114.29 | 880.06 | 1,074.92 | 7.76 | 9.08 | 4.86 | 5.48 | 5.77 | 8.25 | 9.18 | 7.49 | 9.01 | 12.85 | 11.13 | 7.64 | 5.78 | 5.65 | 6.12 | 4.98 | |
| DSO | days | 0.46 | 3.19 | 0.41 | 0.34 | 47.04 | 40.21 | 75.15 | 66.66 | 63.21 | 44.25 | 39.77 | 48.72 | 40.50 | 28.42 | 32.79 | 47.76 | 63.10 | 64.55 | 59.60 | 73.32 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 802.19
= 0.46
The Days of Sales Outstanding (DSO) ratio is a key metric used to evaluate how efficient a company is in collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is favorable as it improves cash flow and liquidity.
Analyzing the DSO trend for Astrana Health Inc reveals fluctuations over the past several quarters. In the latest quarter ending March 31, 2024, the DSO stands at a very low 0.46 days, indicating the company is collecting payments extremely quickly. This is a significant improvement compared to the previous quarter where the DSO was 3.19 days.
Looking at historical data, Astrana Health Inc experienced a spike in DSO in the quarter ending December 31, 2022, at 75.15 days, but the company managed to bring this down significantly in subsequent quarters. However, in the quarter ending March 31, 2023, the DSO increased to 47.04 days before dropping sharply to 0.34 days in the following quarter. This inconsistency may suggest challenges in the company's accounts receivable management.
Overall, the recent reduction in DSO to just 0.46 days is a positive sign for Astrana Health Inc, indicating efficient collections and potentially improved financial health. Continued monitoring of this ratio will be essential to ensure sustained effectiveness in managing accounts receivable and maintaining healthy cash flow levels.