Enhabit Inc. (EHAB)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Receivables turnover		5.98	5.92	6.74	6.45
DSO	days	61.02	61.67	54.14	56.59

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.98
= 61.02

To analyze Enhabit Inc.'s days of sales outstanding (DSO) over the past few quarters, we observe the trend in DSO values. DSO represents the average number of days it takes for a company to collect payment after a sale is made. A lower DSO indicates faster collection of accounts receivable and better liquidity.

Looking at the data provided, Enhabit Inc.'s DSO has fluctuated over the past few quarters. In Jun 30, 2023, the company had a relatively low DSO of 54.14 days, indicating efficient collections. However, this figure increased to 56.59 days by Mar 31, 2023, before rising further to 61.67 days by Sep 30, 2023, and then to 61.02 days by Dec 31, 2023.

The increasing trend in DSO may suggest potential issues with collecting accounts receivable promptly, which could impact the company's cash flow and working capital management. It is important for Enhabit Inc. to monitor and improve its credit policies, collection processes, and customer payment terms to shorten the DSO and enhance the efficiency of its accounts receivable management.