RadNet Inc (RDNT)
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 | 9.88 | 9.42 | 8.76 | 7.52 | 7.72 | 7.83 | 7.97 | 8.11 | 9.36 | 8.13 | 7.63 | 7.17 | 7.91 | 7.72 | 8.38 | 8.00 | 7.40 | 7.30 | 6.63 | 6.45 | |
| DSO | days | 36.96 | 38.75 | 41.67 | 48.56 | 47.30 | 46.61 | 45.78 | 45.03 | 38.98 | 44.91 | 47.82 | 50.90 | 46.12 | 47.25 | 43.57 | 45.61 | 49.34 | 50.00 | 55.08 | 56.58 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.88
= 36.96
Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company manages its accounts receivable. A lower DSO value indicates that the company is collecting payments from its customers more quickly, which is generally considered favorable.
In the case of Radnet Inc, the DSO has been fluctuating over the past eight quarters. It decreased from 48.56 days in Q1 2023 to 42.68 days in Q4 2023. This suggests that the company has improved its collections process in the most recent quarter compared to the first quarter of the year.
However, it is worth noting that the DSO values in the previous quarters have been somewhat inconsistent, ranging from a low of 45.03 days in Q1 2022 to a high of 48.56 days in Q1 2023. This variability could indicate potential challenges in managing accounts receivable efficiently.
Overall, Radnet Inc should continue monitoring its DSO trend and aim to maintain a lower DSO in order to optimize its working capital and cash flow. A consistent and decreasing trend in DSO would reflect improved efficiency in collecting payments from customers, which could positively impact the company's financial health.
Peer comparison
Dec 31, 2023