R1 RCM Inc (RCM)
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 | ||
|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 317.25 | — | — | — | ||||
| DSO | days | 1.15 | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 317.25
= 1.15
The Days of Sales Outstanding (DSO) for R1 RCM Inc. have exhibited fluctuating trends over the past eight quarters. In Q1 2022, the DSO was at its lowest level during this period, standing at 32.54 days. Subsequently, there was an upward trend in DSO, reaching a peak of 59.95 days in Q2 2022.
The DSO then fluctuated between 52.09 days and 56.19 days in the following quarters, indicating a longer average time taken to collect outstanding receivables. However, there was a noticeable improvement in Q3 2023 and Q4 2023, with DSO decreasing to 44.98 days and 46.16 days, respectively.
Overall, the downward trend in DSO in the most recent quarters is a positive indicator, suggesting that the company has been more efficient in collecting payments from customers. However, further monitoring is required to determine if this trend will be sustained and to assess the impact on the company's cash flow and working capital management.
Peer comparison
Dec 31, 2023