The Ensign Group Inc (ENSG)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.67 | 7.41 | 7.99 | 7.88 | 6.57 | |
| DSO | days | 47.57 | 49.27 | 45.67 | 46.34 | 55.58 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.67
= 47.57
Based on the data provided, Ensign Group Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. The DSO measures the average number of days it takes for the company to collect payment after making a sale.
Ensign Group Inc's DSO was 47.47 days as of December 31, 2023, which represents a slight improvement compared to the previous year's DSO of 49.27 days. This indicates that the company is collecting its accounts receivable slightly more efficiently in 2023.
Looking back over the past five years, the DSO has ranged from a low of 45.67 days in 2021 to a high of 55.38 days in 2019. The decreasing trend in DSO from 2019 to 2021 suggests that Ensign Group Inc has been improving its accounts receivable collection process during this period.
Overall, a lower DSO indicates that the company is more effective in collecting payments from its customers, which can have a positive impact on cash flow and liquidity. Ensign Group Inc's relatively stable and improving DSO trend over the years suggests a reasonable level of efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023