Lantheus Holdings Inc (LNTH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.49 | 4.34 | 4.68 | 6.10 | 7.59 | |
| DSO | days | 81.30 | 84.02 | 78.00 | 59.79 | 48.06 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.49
= 81.30
Lantheus Holdings Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment on its sales. Over the past five years, the trend in DSO for Lantheus Holdings Inc has been increasing, indicating a potential deterioration in the company's accounts receivable management efficiency.
In 2019, the DSO stood at 45.74 days, reflecting that on average, the company collected payments for sales within a relatively short period. However, over the subsequent years, the DSO has been steadily climbing. By the end of 2020, the DSO had reached 58.07 days, signaling a lengthening collection period. This trend continued into 2021, with the DSO standing at 76.69 days, and further increased in 2022 to 83.30 days. By the end of 2023, the DSO had reached 80.04 days, showing a continued slow collection of receivables.
The increasing DSO could suggest challenges in collecting receivables promptly, potentially impacting cash flow and liquidity. It may also indicate issues with credit policies, customer payment behavior, or inefficiencies in the collection process. Management should closely monitor and address the DSO trend to improve working capital management and maintain healthy cash flows.
Peer comparison
Dec 31, 2023