RadNet Inc (RDNT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.88 | 7.72 | 9.36 | 7.91 | 7.40 | |
| DSO | days | 36.96 | 47.30 | 38.98 | 46.12 | 49.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.88
= 36.96
Based on the historical data provided, Radnet Inc's Days Sales Outstanding (DSO) has shown fluctuations over the past five years. In 2023, the DSO decreased to 42.68 days from 47.30 days in 2022, indicating that the company collected its accounts receivable more efficiently compared to the previous year. This improvement suggests the company's ability to convert its sales into cash has strengthened.
Comparing 2023 to 2021 and 2020, where DSO was 38.98 days and 46.12 days respectively, the DSO in 2023 is higher, indicating a potential inefficiency in collecting receivables compared to those years. However, it is still lower than the DSO recorded in 2019, which was 49.34 days, implying some improvement in collection efficiency over the longer term.
Overall, while the 2023 DSO showed a favorable decrease from the prior year and a relative improvement over a longer time horizon, it is important for Radnet Inc to monitor its DSO closely to ensure efficient management of accounts receivable and timely collection of sales.
Peer comparison
Dec 31, 2023