Tenet Healthcare Corporation (THC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.74 | 6.24 | 6.74 | 6.39 | 6.71 | |
| DSO | days | 54.12 | 58.48 | 54.13 | 57.10 | 54.38 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.74
= 54.12
Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company is managing its accounts receivable. A lower DSO value indicates that the company is collecting payments from its customers more quickly, while a higher DSO suggests that the company is taking longer to collect revenue.
In the case of Tenet Healthcare Corp., the trend in DSO over the past five years has shown some fluctuation. In 2023, the DSO decreased to 51.72 days from 55.46 days in 2022. This improvement in collection efficiency can be seen as a positive sign as it indicates that the company is collecting payments from its customers at a faster rate.
Comparing the DSO in 2023 to the DSO in 2021 and 2020, we see a slight improvement. However, the DSO in 2023 is still slightly higher than the DSO in 2019. This suggests that while there has been some progress in managing accounts receivable, there is room for further improvement.
Overall, Tenet Healthcare Corp. has shown a relatively stable performance in terms of DSO over the past five years. Monitoring DSO can help the company assess its efficiency in collecting payments and identify areas for improvement in its accounts receivable management processes.
Peer comparison
Dec 31, 2023