DaVita HealthCare Partners Inc (DVA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.03 | 4.55 | 4.82 | 4.74 | 4.94 | |
| DSO | days | 72.64 | 80.19 | 75.73 | 77.07 | 73.88 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.03
= 72.64
DaVita Inc's days of sales outstanding (DSO) measure how long it takes the company to collect revenue from its sales. A lower DSO indicates faster collection of accounts receivable, which is generally favorable as it signifies efficient cash flow management.
In this case, we observe fluctuations in DaVita Inc's DSO over the past five years. The DSO decreased from 80.19 days in 2022 to 72.64 days in 2023, indicating an improvement in collecting receivables more quickly. However, it's worth noting that the DSO had been relatively stable over the previous years, ranging between 73.88 and 77.07 days.
Overall, the decreasing trend in DSO from 2022 to 2023 is a positive sign, suggesting that DaVita Inc may have enhanced its accounts receivable management practices in the most recent year. However, ongoing monitoring of the DSO in the future will provide insights into the company's efficiency in collecting sales revenue.
Peer comparison
Dec 31, 2023