Molina Healthcare Inc (MOH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.98 | 13.89 | 12.76 | 11.62 | 11.97 | |
| DSO | days | 33.25 | 26.28 | 28.61 | 31.42 | 30.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.98
= 33.25
Molina Healthcare Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its customers. The trend in DSO over the past five years indicates the efficiency of Molina Healthcare Inc's accounts receivable management.
In 2023, Molina Healthcare Inc's DSO increased to 33.25 days from 26.28 days in 2022. This suggests that the company took longer to collect payments from its customers in 2023 compared to the previous year.
Comparing to 2021, the DSO also increased in 2023, indicating a potential deterioration in the company's accounts receivable turnover efficiency. However, it is still lower than the DSO in 2020 and 2019, which indicates some level of improvement in collection efficiency when compared to these years.
Overall, while the increase in DSO from 2022 to 2023 may raise concerns about liquidity and collection efficiency, a longer historical perspective shows that Molina Healthcare Inc has managed its receivables more efficiently in 2023 than in earlier years.
Peer comparison
Dec 31, 2023