CVS Health Corp (CVS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.15 | 10.50 | 10.50 | 11.22 | 11.67 | |
| DSO | days | 39.91 | 34.78 | 34.76 | 32.52 | 31.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.15
= 39.91
To analyze CVS Health Corp's Days of Sales Outstanding (DSO) over the past five years, we can see a trend of fluctuating DSO figures. The DSO indicates the average number of days it takes for the company to collect payments from its customers after making a sale.
The DSO for CVS Health Corp has shown an increasing trend from 27.89 days in 2019 to 35.94 days in 2023. This indicates that the company took longer to collect its accounts receivable over this period. A higher DSO can be a sign of potential liquidity issues or difficulties in collecting payments from customers.
It's worth noting that the DSO figures for 2021 and 2022 remained relatively stable around the 30-day mark, before experiencing a notable increase in 2023. This change may warrant further investigation into the company's credit policies, customer payment behaviors, or the overall efficiency of its accounts receivable management.
Overall, the increasing trend in DSO for CVS Health Corp over the past five years suggests a potential area of concern that may require closer monitoring and management to ensure efficient cash flow and financial performance.
Peer comparison
Dec 31, 2023