DaVita HealthCare Partners Inc (DVA)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.01 | 4.81 | 4.58 | 4.12 | 5.03 | 5.01 | 4.96 | 4.90 | 4.55 | 4.67 | 4.41 | 4.64 | 4.82 | 4.65 | 4.53 | 4.43 | 4.74 | 4.75 | 4.74 | 4.85 | |
| DSO | days | 72.85 | 75.83 | 79.65 | 88.49 | 72.64 | 72.86 | 73.60 | 74.54 | 80.19 | 78.20 | 82.72 | 78.61 | 75.73 | 78.52 | 80.50 | 82.45 | 77.07 | 76.78 | 76.93 | 75.33 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.01
= 72.85
DaVita HealthCare Partners Inc's Days Sales Outstanding (DSO) is an important metric that reflects the average number of days it takes the company to collect payments from its customers for the sales made.
Analyzing the DSO trend over the given period shows some fluctuation in the collection efficiency of the company. From March 31, 2020, to June 30, 2022, the DSO ranged between 75.33 days and 82.72 days with some fluctuations. However, there was a notable increase in DSO to 88.49 days on March 31, 2024, indicating a potential delay in collecting payments from customers.
The company managed to decrease the DSO to 72.64 days by December 31, 2023, which was the lowest point during the period analyzed. This indicates an improvement in the collection process and efficiency. However, the subsequent increase in DSO over the next four quarters, with a maximum of 88.49 days on March 31, 2024, may raise concerns about the effectiveness of the company's credit and collection policies.
In conclusion, while DaVita HealthCare Partners Inc has shown fluctuations in its DSO over the period analyzed, the company needs to focus on maintaining a reasonable and consistent DSO to ensure timely collection of receivables and healthy cash flows.
Peer comparison
Dec 31, 2024