ICU Medical Inc (ICUI)

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 13.98 13.90 14.14 16.53 10.28 9.60 8.24 7.60 12.43 11.17 10.59 10.47 10.24 7.69 6.35 6.38 6.26 6.13 5.69 5.71
DSO days 26.10 26.26 25.81 22.08 35.49 38.04 44.30 48.05 29.36 32.68 34.48 34.86 35.64 47.44 57.52 57.23 58.29 59.50 64.13 63.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.98
= 26.10

To analyze ICU Medical, Inc.'s Days Sales Outstanding (DSO) over the past eight quarters, we observe a consistent trend of decreasing DSO from Q1 2022 to Q1 2023, indicating an improvement in the company's accounts receivable turnover efficiency. The DSO decreased from 48.99 days in Q1 2022 to 22.56 days in Q1 2023, reflecting a significant enhancement in the company's ability to collect receivables promptly.

The decrease in DSO signifies that ICU Medical, Inc. is converting its sales into cash more efficiently, which could be attributed to better credit policies, improved collection processes, or a shift towards faster-paying customers. This improved liquidity position helps strengthen the company's working capital management and overall financial health.

It is noteworthy that the DSO experienced fluctuations within this period, reaching its peak at 48.99 days in Q1 2022 and then declining to a low of 22.56 days in Q1 2023. Analyzing these fluctuations can provide insights into seasonality, changes in customer payment behavior, or the effectiveness of credit control measures implemented by the company.

Overall, the trend of decreasing DSO in ICU Medical, Inc. suggests a positive development in the company's accounts receivable management, indicating enhanced cash flow generation and potentially improved profitability in the future.