Globus Medical (GMED)

The days of sales outstanding (DSO) for Globus Medical Inc have shown a fluctuating trend over the past five years. In 2023, the DSO increased to 117.11 days from 76.10 days in 2022, indicating a significant increase in the number of days it takes for the company to collect its accounts receivable. This could potentially signal difficulties in collecting payments from customers in a timely manner.

Comparing 2023 to 2021, there has been a notable increase in DSO from 62.64 days to 117.11 days, suggesting a deterioration in the company's accounts receivable management efficiency. It is worth noting that the DSO in 2023 is considerably higher than in the prior years, indicating a potential area of concern for the company's cash flow and liquidity.

In contrast, when comparing 2023 to 2019, despite the increase in DSO, it is still lower than the 71.72 days recorded in 2019. This implies that the company has experienced fluctuations in its collection period over the past five years, potentially reflecting changes in the company's sales practices, customer base, or credit policies.

Overall, the increasing trend in DSO for Globus Medical Inc raises some concerns about its accounts receivable management effectiveness and the potential impact on its working capital and cash flow position. Further analysis and monitoring of the company's collection practices may be warranted to address any underlying issues and improve operational efficiency.

Peer comparison

Dec 31, 2023