Laboratory Corporation of America Holdings (LH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.38 | 5.36 | 7.17 | 5.64 | 7.48 | |
| DSO | days | 57.20 | 68.04 | 50.89 | 64.75 | 48.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.38
= 57.20
The days of sales outstanding (DSO) for Laboratory Corp. Of America Holdings have shown fluctuations over the past five years. In 2023, the DSO decreased to 62.99 days compared to 74.03 days in 2022. This indicates that the company is collecting its accounts receivable more efficiently in the most recent year.
Looking back further, in 2021 the DSO was 67.43 days, lower than in 2022 but higher than the current year. In 2020, the DSO reached its peak at 78.77 days, which suggests that the company took a longer period to collect its receivables during that time. However, in 2019, the DSO was 63.98 days, similar to the current year but slightly higher.
Overall, there seems to be a positive trend in the DSO for Laboratory Corp. Of America Holdings, as the company has been able to improve its accounts receivable collection efficiency in the most recent year compared to previous years. This indicates better management of credit policies and collection procedures, which can contribute to improved cash flow and overall financial health of the company.
Peer comparison
Dec 31, 2023