Cable One Inc (CABO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.86 | 20.28 | 17.86 | 16.35 | 26.13 | |
| DSO | days | 23.02 | 18.00 | 20.43 | 22.32 | 13.97 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.86
= 23.02
Cable One Inc's Days Sales Outstanding (DSO) measures how long it takes the company to collect its accounts receivable. The trend in DSO over the past five years shows an increasing pattern, indicating a lengthening in the collection period. In 2023, the DSO stands at 20.44 days, compared to 15.56 days in 2022, 12.79 days in 2021, 10.68 days in 2020, and 12.02 days in 2019.
The increase in DSO may suggest potential issues with the company's accounts receivable management or the creditworthiness of its customers. A rising DSO could also indicate a potential slowdown in collections efficiency, leading to cash flow challenges and liquidity concerns for the company. It is important for Cable One Inc to closely monitor and address the factors contributing to the extended DSO to ensure optimal cash flow management and financial stability.
Peer comparison
Dec 31, 2023