Hims Hers Health Inc (HIMS)
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 | 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
Days Sales Outstanding (DSO) is a financial ratio used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers quickly, while a higher DSO may indicate potential issues with collections.
For Hims Hers Health Inc, the DSO for December 31, 2020 was 2.70 days, which suggests that the company was efficient in collecting payments from its customers at that time. However, the DSO increased to 5.50 days by December 31, 2021, indicating a potential slowdown in collections or longer payment cycles.
Subsequently, the DSO decreased to 2.70 days by December 31, 2022, suggesting an improvement in collections efficiency. The DSO increased slightly to 2.80 days by December 31, 2023, which is still relatively low and indicates that the company continues to manage its accounts receivable effectively.
Overall, the trend in Hims Hers Health Inc's DSO shows some fluctuations but generally indicates that the company has been able to maintain efficient collections processes, with some variance observed over the periods analyzed. It would be important for stakeholders to monitor changes in DSO to ensure continued effectiveness in managing accounts receivable.
Peer comparison
Dec 31, 2024