Chemed Corp (CHE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.48 | 15.31 | 15.59 | 16.39 | 13.48 | |
| DSO | days | 29.26 | 23.83 | 23.41 | 22.26 | 27.08 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.48
= 29.26
To analyze Chemed Corp.'s days of sales outstanding (DSO) over the past five years, we observe fluctuations in the DSO metric. In 2023, the DSO increased to 29.26 days from 23.83 days in 2022, which indicates that it took the company longer to collect its accounts receivable compared to the previous year.
However, when comparing 2023 to 2021, we see a similar trend where the DSO increased from 23.41 days to 29.26 days. This suggests that the collection period further extended in 2023 compared to 2021. In contrast, there was an improvement in DSO from 2020 to 2021, indicating that the company was able to collect its receivables more efficiently in 2021.
Looking back at 2019, the DSO was 27.06 days, which is slightly lower than 2023 but higher than 2020 and 2021. This shows that the company has experienced varying collection efficiencies over the past five years.
Overall, the increasing trend in DSO from 2020 to 2023 warrants closer attention to Chemed Corp.'s accounts receivable management and collection practices to ensure optimal cash flow and liquidity management.
Peer comparison
Dec 31, 2023