Select Medical Holdings (SEM)
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 | 6.87 | 7.16 | 6.93 | 6.62 | 6.96 | 7.15 | 7.03 | 6.87 | 7.21 | 6.69 | 6.34 | 5.80 | 6.04 | 6.33 | 7.02 | 6.58 | 6.92 | 6.47 | 6.46 | 6.48 | |
| DSO | days | 53.15 | 50.98 | 52.69 | 55.14 | 52.46 | 51.06 | 51.94 | 53.16 | 50.63 | 54.59 | 57.61 | 62.97 | 60.43 | 57.69 | 52.00 | 55.46 | 52.74 | 56.41 | 56.49 | 56.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.87
= 53.15
Days of Sales Outstanding (DSO) is a crucial financial metric that indicates the average number of days a company takes to collect its accounts receivable. A lower DSO suggests a quicker collection of receivables, which is generally favorable for the company as it indicates efficient management of working capital.
Analyzing the DSO trend for Select Medical Holdings Corporation over the past eight quarters, we observe a fluctuating pattern. In Q1 2022, the DSO stood at 54.91 days, gradually decreasing to its lowest point of 51.50 days in Q4 2023. This downward trend indicates an improvement in the company's accounts receivable collection efficiency over time.
Moreover, compared to the same quarter in the previous year, the DSO has shown a consistent decline. For instance, in Q4 2022, the DSO was 54.25 days, which decreased to 51.50 days in Q4 2023. This trend suggests that Select Medical Holdings Corporation has been successful in accelerating its accounts receivable collection process and managing its working capital effectively.
Overall, the declining trend in DSO over the quarters and year-on-year indicates that Select Medical Holdings Corporation has been efficient in collecting its accounts receivable in a timelier manner, which is a positive signal for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023