US Physicalrapy Inc (USPH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.66 | 10.65 | 10.36 | 10.09 | 10.43 | |
| DSO | days | 31.30 | 34.27 | 35.22 | 36.16 | 35.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.66
= 31.30
The Days of Sales Outstanding (DSO) is a crucial ratio used to assess how efficiently a company is managing its accounts receivable. A lower DSO value indicates that the company is collecting payments from customers more quickly, which is generally favorable.
Analyzing U.S. Physical Therapy, Inc.'s DSO figures over the past five years, we observe a fluctuating trend. In 2023, the DSO decreased to 42.08 days from 45.27 days in 2022, indicating a faster collection of receivables. However, we also note that the DSO was relatively lower in 2019 at 42.45 days.
Despite the variability, the company's DSO figures have generally been in the low 40s range, suggesting an efficient management of accounts receivable over the years. It would be beneficial for stakeholders to monitor future trends in DSO to ensure continued effectiveness in receivables collection.
Peer comparison
Dec 31, 2023