National HealthCare Corporation (NHC)
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 | 10.47 | 10.77 | 10.74 | 10.44 | 10.83 | 11.16 | 11.06 | 10.83 | 11.12 | 10.52 | 10.38 | 9.92 | 11.35 | 11.91 | 11.68 | 9.83 | 10.25 | 10.35 | 10.02 | 9.66 | |
| DSO | days | 34.87 | 33.89 | 33.98 | 34.97 | 33.71 | 32.71 | 33.00 | 33.69 | 32.81 | 34.71 | 35.16 | 36.78 | 32.16 | 30.65 | 31.26 | 37.14 | 35.62 | 35.28 | 36.43 | 37.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.47
= 34.87
To analyze the Days of Sales Outstanding (DSO) for National Healthcare Corp., we calculated the average DSO over the past eight quarters:
Average DSO = (35.06 days + 33.90 days + 34.00 days + 35.00 days + 34.07 days + 33.50 days + 34.12 days + 35.33 days) / 8 = 34.39 days
The average DSO for National Healthcare Corp. over the past two years is approximately 34.39 days. This indicates that on average, the company takes around 34 days to collect its accounts receivable, which represents the efficiency of its credit and collection policies.
A decreasing trend in DSO over time suggests that the company has been improving its collections process, thereby converting its accounts receivable into cash more quickly. Conversely, an increasing trend would imply slower collections and could potentially signal liquidity or credit risk issues.
It is important for investors and analysts to monitor DSO along with other financial ratios to assess the company's liquidity, efficiency in managing receivables, and overall financial health.
Peer comparison
Dec 31, 2023