Blackline Inc (BL)

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		3.40	4.35	4.25	4.45	3.43	4.54	3.77	3.52	2.97	3.35	3.40	3.74	3.00	3.46	3.12	3.28	2.76	3.27	3.19	3.21
DSO	days	107.32	83.86	85.91	82.10	106.45	80.37	96.93	103.63	122.85	108.87	107.35	97.67	121.75	105.37	117.12	111.30	132.37	111.62	114.53	113.75

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.40
= 107.32

The Days Sales Outstanding (DSO) ratio measures how efficiently a company collects its accounts receivable. A lower DSO indicates faster collection of receivables, which is generally positive as it implies strong cash flow. Conversely, a higher DSO may indicate potential issues with collections or credit terms.

Analyzing Blackline Inc's DSO over the provided periods, we observe fluctuations:

- The DSO ranged from 80.37 days to 122.85 days, showing variation in the time taken to convert sales into cash.
- There is a visible trend of improvement in DSO from December 2019 to March 2020, suggesting better management of receivables.
- However, the DSO increased sharply in December 2020, indicating potential issues with collections or changes in credit terms.
- The DSO fluctuated around the 100-day mark during 2021 and 2022, indicating some inconsistency in receivables management.
- In the most recent period, the DSO was 107.32 days, reflecting a moderate increase from the previous quarter.

Overall, Blackline Inc's DSO has shown some volatility over the analyzed periods, indicating potential areas of improvement in managing accounts receivable. Further monitoring and analysis of collection processes and credit policies may be warranted to maintain healthy cash flows and operational efficiency.