The Ensign Group Inc (ENSG)
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 | 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.69 | 7.53 | 7.60 | 7.20 | 7.41 | 8.22 | 8.29 | 7.98 | 7.99 | 8.18 | 7.96 | 7.81 | 7.88 | 7.12 | 6.92 | 6.30 | 6.58 | 7.31 | 7.28 | 10.57 | |
| DSO | days | 47.45 | 48.49 | 48.05 | 50.66 | 49.27 | 44.39 | 44.05 | 45.73 | 45.67 | 44.64 | 45.85 | 46.71 | 46.34 | 51.28 | 52.72 | 57.91 | 55.50 | 49.96 | 50.13 | 34.52 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.69
= 47.45
To analyze Ensign Group Inc's Days Sales Outstanding (DSO) based on the provided data, let's calculate the average DSO for the last eight quarters:
Average DSO = (47.47 + 48.43 + 48.06 + 50.68 + 49.27 + 44.41 + 44.07 + 45.72) / 8
Average DSO = 47.54 days
Ensign Group Inc's average DSO over the past two years is 47.54 days. This metric indicates the average number of days it takes for the company to collect revenue after making a sale. A lower DSO is generally better as it signifies faster cash inflows and efficient accounts receivable management.
In this case, the DSO has been relatively stable over the quarters, hovering around the 45-50 day range. This consistency suggests that Ensign Group Inc has maintained a steady collection process for its sales. However, it is important for the company to monitor and potentially improve its DSO to ensure timely cash flows and optimize working capital management.
Overall, a further analysis of the trend and a comparison with industry benchmarks would provide more insights into Ensign Group Inc's efficiency in collecting revenue from its customers.
Peer comparison
Dec 31, 2023