Hims Hers Health Inc (HIMS)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 242.05 | 130.15 | 135.11 | 66.31 | 135.23 | |
| DSO | days | 1.51 | 2.80 | 2.70 | 5.50 | 2.70 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 242.05
= 1.51
Based on the data provided, Hims Hers Health Inc's Days Sales Outstanding (DSO) has shown some fluctuation over the years. The DSO for the company was 2.70 days on December 31, 2020, and remained the same at 2.70 days on December 31, 2022. However, there was an increase to 5.50 days on December 31, 2021, before decreasing to 2.80 days by December 31, 2023. Interestingly, the DSO significantly decreased to 1.51 days on December 31, 2024, indicating a potentially improved efficiency in collecting outstanding sales.
Overall, a lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of strong cash flows and efficient management of receivables. However, it's important to consider the industry benchmarks and trends over time to assess the effectiveness of the company's credit and collection policies.
Peer comparison
Dec 31, 2024