Community Healthcare Trust Inc (CHCT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze the Days of Sales Outstanding (DSO) trend for Community Healthcare Trust Inc over the past 5 years, we observe the following:
1. DSO has shown an increasing trend from 49.72 days in 2019 to 74.80 days in 2023. This indicates that the company is taking longer to collect its accounts receivable over the years.
2. The increase in DSO suggests that Community Healthcare Trust Inc may be facing challenges in collecting payments from its customers. This can lead to potential cash flow issues if the trend continues.
3. The DSO in 2023 (74.80 days) is significantly higher compared to 2022 (67.66 days) and 2021 (56.75 days), indicating a worsening in the company's accounts receivable collection efficiency.
4. The DSO in 2020 (49.95 days) and 2019 (49.72 days) was relatively consistent, suggesting that there was more stability in the company's accounts receivable management during those years.
5. It is important for Community Healthcare Trust Inc to closely monitor its DSO and implement strategies to improve its accounts receivable collection process to ensure a healthy cash flow and financial stability.
In conclusion, the increasing trend in DSO for Community Healthcare Trust Inc highlights the need for the company to focus on strengthening its accounts receivable management to enhance liquidity and financial performance.
Peer comparison
Dec 31, 2023