CorVel Corp (CRVL)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 0.01 | 8.19 | 8.87 | 7.82 | 8.54 | |
| DSO | days | 42,436.87 | 44.57 | 41.16 | 46.65 | 42.75 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 0.01
= 42,436.87
To analyze CorVel Corp's Days Sales Outstanding (DSO) based on the given data, we observe the trend over the past five years. DSO represents the average number of days it takes for a company to collect its accounts receivable, indicating how efficiently a company manages its credit and collection processes.
The DSO trend for CorVel Corp is as follows:
- As of March 31, 2021, the DSO stood at 42.75 days.
- By March 31, 2022, the DSO increased to 46.65 days, suggesting a slower collection of accounts receivable.
- The DSO improved to 41.16 days as of March 31, 2023, indicating better efficiency in collecting payments.
- However, there seems to be a significant anomaly in the data for March 31, 2025, where the DSO is reported as 42,436.87 days, which is highly unusual and may be a data entry error.
Overall, a lower DSO is generally preferred as it signifies quicker collection of payments and better liquidity. CorVel Corp's DSO has fluctuated over the years, with some improvements in efficiency in collecting accounts receivable. However, the anomaly in the data for March 31, 2025, needs further investigation to understand the actual DSO trend.