Humana Inc (HUM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		52.27	55.48	45.79	67.80	61.45
DSO	days	6.98	6.58	7.97	5.38	5.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 52.27
= 6.98

To analyze Humana Inc.'s Days Sales Outstanding (DSO) over the past five years, we observe fluctuations in the efficiency of the company's accounts receivable collection process.

In 2023, the DSO increased to 6.98 days from 6.58 days in 2022, indicating a slight deterioration. This may suggest that Humana took slightly longer to collect payments from its customers in 2023.

Comparing 2023 to 2021, where the DSO was 7.97 days, there was an improvement in efficiency. This shows that in 2023, Humana managed its accounts receivable better than in 2021.

In 2020 and 2019, the DSO was 5.38 days and 5.94 days, respectively, reflecting a shorter collection period compared to the later years. This suggests that Humana was more efficient in collecting payments from customers during those years.

Overall, while there was a slight increase in DSO in 2023 compared to the previous year, the company has generally maintained a relatively efficient accounts receivable collection process over the past five years. It will be important for Humana to closely monitor and manage its DSO to ensure effective cash flow management in the future.