Laboratory Corporation of America Holdings (LH)
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 | 6.72 | 6.18 | 5.98 | 5.92 | 6.38 | 7.74 | 7.86 | 6.33 | 7.07 | 6.38 | 6.78 | 7.12 | 7.17 | 7.09 | 7.42 | 6.59 | 5.64 | 5.94 | 6.91 | 7.82 | |
| DSO | days | 54.33 | 59.06 | 61.00 | 61.61 | 57.20 | 47.18 | 46.45 | 57.68 | 51.64 | 57.18 | 53.87 | 51.24 | 50.89 | 51.49 | 49.22 | 55.37 | 64.75 | 61.46 | 52.84 | 46.69 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.72
= 54.33
The Days of Sales Outstanding (DSO) for Laboratory Corporation of America Holdings has shown some fluctuations over the past few years.
From March 31, 2020, to December 31, 2020, the DSO increased steadily from 46.69 days to 64.75 days, reflecting a potential issue with collecting accounts receivable efficiently during this period. This upward trend reversed in the subsequent quarters, declining to 50.89 days by December 31, 2021, indicating improvements in the company's collections processes.
The DSO remained relatively stable between March 31, 2022, and September 30, 2023, hovering around the early 50s range. This suggests that the company was maintaining a consistent pace in collecting payments from customers during this period.
However, there was a noticeable increase in DSO in the following quarters, reaching a peak of 61.61 days by March 31, 2024. This uptick may indicate a potential slowdown in collections or a delay in receiving payments from customers, which could impact the company's cash flow and liquidity position.
Overall, it is essential for Laboratory Corporation of America Holdings to closely monitor its DSO and actively manage its accounts receivable to ensure timely collections and optimal cash flow management.
Peer comparison
Dec 31, 2024