Healthcare Services Group Inc (HCSG)
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 | 4.34 | 4.51 | 4.39 | 4.76 | 4.92 | 4.79 | 5.04 | 5.13 | 5.43 | 5.68 | 6.14 | 6.80 | 6.89 | 6.44 | 6.11 | 5.97 | 5.40 | 5.41 | 5.60 | 5.62 | |
| DSO | days | 84.08 | 80.99 | 83.17 | 76.66 | 74.13 | 76.27 | 72.48 | 71.18 | 67.18 | 64.30 | 59.42 | 53.68 | 52.97 | 56.68 | 59.75 | 61.14 | 67.60 | 67.51 | 65.19 | 64.99 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.34
= 84.08
The Days Sales Outstanding (DSO) metric for Healthcare Services Group, Inc. has shown some variability over the past eight quarters. In Q4 2023, the DSO was 83.75 days, representing an increase compared to the previous quarter where it was 80.57 days. This suggests that the average number of days it takes for the company to collect its outstanding accounts receivable has slightly lengthened.
Looking back further, the DSO has generally trended upwards since Q1 2022 when it was 71.23 days. This indicates that the company may be facing challenges in collecting payments from customers in a timely manner. It would be important for Healthcare Services Group, Inc. to closely monitor its accounts receivable management processes to ensure efficient and effective collection procedures are in place.
Overall, the trend in DSO for Healthcare Services Group, Inc. suggests potential liquidity risks and the need for continued focus on improving receivables management to enhance cash flow and financial stability.