Elevance Health Inc (ELV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	—	—	—	1,120.57
DSO	days	—	—	—	—	0.33

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO value is generally favorable as it shows that the company is able to collect payments quickly, which helps in maintaining cash flow and liquidity.

In the case of Elevance Health Inc, the DSO has shown a fluctuating trend over the past five years. In 2019, the DSO was 37.35 days, indicating that, on average, it took the company approximately 37 days to collect payments from customers. Subsequently, the DSO decreased to 33.11 days in 2020, suggesting an improvement in the company's collection efficiency.

However, the DSO increased again to 35.82 days in 2021 and further to 37.62 days in 2022, which could potentially indicate a slowdown in collections or issues with accounts receivable management. It is essential for the company to closely monitor and address any factors that may be contributing to the increase in DSO to ensure efficient cash flow management.

In the most recent year, 2023, the DSO slightly decreased to 38.31 days. While this decrease is minimal, it is a positive sign that the company may be making efforts to improve its collection processes. Overall, Elevance Health Inc should focus on consistently monitoring and optimizing its DSO to enhance its working capital management and overall financial health.