Option Care Health Inc (OPCH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.11 | 8.12 | 8.03 | 7.15 | 5.86 | |
| DSO | days | 40.08 | 44.94 | 45.47 | 51.03 | 62.24 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.11
= 40.08
The days of sales outstanding (DSO) for Option Care Health Inc. have shown a decreasing trend over the past five years, which is a positive indicator of the company's efficiency in collecting its accounts receivable. The DSO decreased from 51.25 days in 2019 to 32.04 days in 2023, reflecting a consistent improvement in the company's collection process.
A lower DSO indicates that Option Care Health Inc. is collecting payments from its customers more quickly, which can improve its cash flow and working capital management. The decreasing trend in DSO suggests that the company has been effective in managing its accounts receivable and maintaining strong relationships with its customers.
Overall, the improvement in DSO over the years indicates that Option Care Health Inc. has been successful in streamlining its collection process and optimizing its receivables management, contributing to its financial health and operational efficiency.
Peer comparison
Dec 31, 2023