The Ensign Group Inc (ENSG)
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 | 7.47 | 7.41 | 7.24 | 7.41 | 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 | |
| DSO | days | 48.85 | 49.27 | 50.41 | 49.25 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.47
= 48.85
The Days Sales Outstanding (DSO) is a key financial metric that indicates how efficiently a company collects its accounts receivable from customers. Lower DSO values are generally seen as favorable as they imply faster cash collection.
Analyzing the DSO trend for The Ensign Group Inc from March 31, 2020, to December 31, 2024, we observe a generally declining pattern. The DSO decreased from 57.91 days on March 31, 2020, to 48.85 days on December 31, 2024, indicating improvements in the company's accounts receivable management and cash collection efficiency over this period.
The company consistently reduced its DSO throughout the years, with occasional fluctuations. Notable decreases can be seen between March 31, 2020, and December 31, 2021, where the DSO decreased from 57.91 days to 45.67 days. However, there was a slight uptick in DSO from June 30, 2022, to December 31, 2022.
Overall, the declining trend in DSO over the years suggests that The Ensign Group Inc has been successful in managing its accounts receivable effectively, potentially resulting in improved cash flows and liquidity. To maintain this positive trend, the company should continue to focus on efficient billing, collections processes, and credit management to ensure timely receipt of payments from customers.
Peer comparison
Dec 31, 2024