Blackbaud Inc (BLKB)

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		10.49	10.19	6.11	10.28	10.01	11.66	6.58	10.33	8.89	8.59	7.52	10.85	9.57	9.38	7.05	10.18	10.13	9.74	6.64	9.48
DSO	days	34.79	35.83	59.74	35.50	36.46	31.31	55.44	35.32	41.07	42.49	48.54	33.64	38.13	38.90	51.75	35.84	36.02	37.46	54.94	38.49

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.49
= 34.79

To analyze Blackbaud Inc's Days of Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection efficiency of the company. The DSO metric represents the average number of days it takes for the company to collect outstanding receivables, indicating the effectiveness of its credit and collection policies.

In Q4 2023, Blackbaud Inc reported a DSO of 35.60 days, a slight improvement from the previous quarter's 37.68 days. This suggests that the company was able to collect its accounts receivable more promptly during this period.

Looking further back, in Q2 2023, there was a significant spike in DSO to 60.69 days, indicating a delay in collecting receivables compared to previous quarters. However, Blackbaud managed to reduce this figure in subsequent quarters, reflecting efforts to streamline collections processes.

Comparing with the same quarter in the previous year, there seems to be a consistent improvement in DSO as in Q4 2022, it stood at 37.54 days, slightly lower than the recent Q4 2023 figure. This suggests that Blackbaud has managed to maintain or even enhance its collection efficiency over the year.

Overall, a decreasing trend in DSO indicates that Blackbaud Inc has been improving its collections processes, which is a positive sign as it signifies better liquidity and cash flow management. However, management should continue monitoring DSO closely to ensure efficient working capital management and timely collections in the future.