Centene Corp (CNC)
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 ÷ —
= —
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting receivables more quickly, which is generally seen as positive as it reflects efficient management of accounts receivable.
Analyzing Centene Corp.'s DSO over the past five years, we observe that there has been a gradual increase in DSO from 30.55 days in 2019 to 36.81 days in 2023. This trend suggests that Centene has been taking longer to collect revenue from its customers over the years.
The increase in DSO could indicate issues with the company's accounts receivable management, such as extending more lenient credit terms to customers, an increase in slow-paying customers, or inefficiencies in the collection process. It may also point to potential liquidity challenges if the company is unable to convert sales into cash quickly.
Further investigation into the underlying reasons for the increasing DSO trend at Centene Corp. would be warranted to understand the impact on the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023