CorVel Corp (CRVL)
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 | 5.70 | 5.90 | 6.34 | 6.55 | 6.67 | 6.31 | 6.10 | 6.19 | 5.88 | 6.68 | 6.66 | 6.69 | 6.74 | 7.06 | 5.95 | 6.37 | 6.93 | 9.01 | 8.32 | 8.91 | |
| DSO | days | 64.04 | 61.90 | 57.55 | 55.70 | 54.70 | 57.86 | 59.81 | 58.92 | 62.08 | 54.60 | 54.79 | 54.58 | 54.17 | 51.67 | 61.33 | 57.33 | 52.67 | 40.52 | 43.87 | 40.97 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.70
= 64.04
The Days Sales Outstanding (DSO) of CorVel Corp has shown fluctuation over the recent quarters. DSO measures the average number of days a company takes to collect revenue after a sale is made. A higher DSO indicates slower collection of payments, potentially signaling issues with receivables management.
From Dec 31, 2019, to Mar 31, 2024, CorVel Corp's DSO ranged from 40.52 days to 64.04 days. The trend shows a general increase in DSO from the beginning of 2020 until now, with some fluctuations along the way. The peak DSO of 64.04 days on Mar 31, 2024, might indicate potential challenges in collecting payments efficiently in the most recent quarter.
A higher DSO could imply that the company is facing difficulties in collecting payments from customers promptly, which may lead to cash flow issues. It is essential for CorVel Corp to address any underlying reasons for the increase in DSO, such as changes in credit policies, customer payment behavior, or collection processes.
Overall, monitoring and managing DSO effectively is crucial for CorVel Corp to maintain healthy cash flow and efficient working capital management.