HCA Holdings Inc (HCA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.52 | 6.77 | 7.26 | 7.31 | 6.96 | |
| DSO | days | 55.95 | 53.88 | 50.29 | 49.94 | 52.47 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.52
= 55.95
The Days Sales Outstanding (DSO) ratio for HCA Healthcare Inc has shown a slight increasing trend over the past five years. In December 2023, the DSO stood at 55.95 days, compared to 53.88 days in December 2022, 50.29 days in December 2021, 49.94 days in December 2020, and 52.47 days in December 2019.
This indicates that, on average, it took the company 55.95 days to collect its accounts receivable in 2023, representing a longer collection period compared to the previous years. A longer collection period may suggest potential challenges in the company's ability to efficiently collect payments from customers, impacting its cash flow and liquidity position.
Further analysis of the underlying reasons for the increase in DSO could provide insights into the company's credit policies, customer payment behavior, and overall operating efficiency in managing receivables. It is crucial for HCA Healthcare Inc to monitor and address any factors contributing to the rise in DSO to maintain healthy working capital management and financial performance.
Peer comparison
Dec 31, 2023