RadNet Inc (RDNT)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 9.81 9.88 7.72 9.36 7.91
DSO days 37.20 36.96 47.30 38.98 46.12

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.81
= 37.20

To analyze RadNet Inc's Days Sales Outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, the following observations can be made:

1. RadNet's DSO decreased from 46.12 days on December 31, 2020, to 38.98 days on December 31, 2021, indicating an improvement in the company's ability to collect revenue from its customers more efficiently.

2. However, on December 31, 2022, the DSO increased to 47.30 days, suggesting a slight deterioration in the company's collections efficiency compared to the previous year.

3. Subsequently, RadNet managed to lower its DSO to 36.96 days by December 31, 2023, showing a significant improvement in collecting receivables more promptly.

4. As of December 31, 2024, the DSO remained relatively stable at 37.20 days, indicating that RadNet was able to maintain its efficient collection practices from the previous year.

Overall, RadNet Inc's DSO trend shows fluctuations but generally demonstrates effective management of accounts receivable and timely collection of sales revenue over the analyzed period. A lower DSO is usually preferable as it implies quicker cash conversion and efficient working capital management.