BioLife Solutions Inc (BLFS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.64 | 4.74 | 5.12 | 6.01 | 5.12 | |
| DSO | days | 47.75 | 76.94 | 71.31 | 60.77 | 71.29 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.64
= 47.75
BioLife Solutions Inc's days of sales outstanding (DSO) have shown variability over the past five years. In 2019, the DSO was 71.29 days, decreased in 2020 to 60.77 days, further decreased in 2021 to 71.31 days, increased significantly in 2022 to 76.94 days, and then decreased in 2023 to 47.75 days.
The decreasing trend in DSO from 2019 to 2020 indicates that the company was able to collect its accounts receivable more efficiently in 2020. However, the subsequent increase in DSO in 2021 suggests a deterioration in the collection period. The significant rise in DSO in 2022 could imply potential difficulties in collecting outstanding sales, which may be a cause for concern.
The sharp decrease in DSO in 2023 is a positive sign as it indicates the company has improved its collection efficiency compared to the previous year. A lower DSO reflects that BioLife Solutions Inc is converting its sales into cash more quickly. This improvement could signify better credit management practices or stronger customer relationships.
Overall, a downward trend in DSO is generally favorable, as it indicates that the company is more efficient in collecting payments from customers. However, fluctuations in DSO should be analyzed in conjunction with other financial metrics to gain a more comprehensive understanding of BioLife Solutions Inc's financial performance and liquidity management.
Peer comparison
Dec 31, 2023