Akamai Technologies Inc (AKAM)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.53	5.28	5.35	5.04	4.77
DSO	days	66.02	69.09	68.27	72.35	76.46

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 66.02

Days Sales Outstanding (DSO) is a crucial metric for Akamai Technologies Inc as it indicates how long, on average, it takes for the company to collect payment for its sales. A lower DSO is generally preferred as it suggests that the company is able to convert its sales into cash more efficiently.

In 2020, Akamai had a DSO of 76.46 days, which decreased to 72.35 days by the end of 2021. This reduction indicates an improvement in the company's ability to collect payments from its customers more promptly.

By the end of 2022, the DSO declined further to 68.27 days, demonstrating continued efficiency in managing accounts receivable. Although there was a slight uptick in DSO in 2023 to 69.09 days, it remained relatively low compared to the initial 2020 figure.

In the most recent data available, by December 31, 2024, Akamai achieved a DSO of 66.02 days, indicating a positive trend towards faster collections and efficient cash flow management.

Overall, the decreasing trend in DSO over the years reflects Akamai's effectiveness in managing its accounts receivable, optimizing cash flow, and maintaining healthy liquidity levels. This improvement suggests that Akamai has been successful in ensuring timely collection of payments, which is essential for its financial health and operational efficiency.