Quest Diagnostics Incorporated (DGX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.52 | 8.15 | 7.39 | 6.21 | 7.27 | |
| DSO | days | 48.53 | 44.76 | 49.39 | 58.79 | 50.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.52
= 48.53
Quest Diagnostics, Inc.'s Days of Sales Outstanding (DSO) has varied over the past five years. In 2023, the DSO decreased to 47.74 days from 44.13 days in 2022, indicating that the company collected its accounts receivable more efficiently. Comparing to 2021, where the DSO was 48.65 days, the improvement is evident.
However, it is noteworthy that in 2020, the DSO was 58.79 days, reflecting a less efficient collection period compared to the recent years. The improvement in DSO since 2020 suggests that Quest Diagnostics has been managing its accounts receivable better.
Furthermore, compared to 2019 when the DSO was 50.22 days, the current DSO of 47.74 days in 2023 is lower, showing a positive trend in the company's ability to convert its accounts receivable into cash. Overall, the decreasing trend in DSO over the years indicates potential improvements in Quest Diagnostics' accounts receivable management and cash flow efficiency.
Peer comparison
Dec 31, 2023