Cogent Communications Group Inc (CCOI)
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 | 6.54 | 8.41 | 6.89 | 11.91 | 11.10 | 9.14 | 8.88 | 9.46 | 9.99 | 11.87 | 11.76 | 12.33 | 11.11 | 12.35 | 12.69 | 11.83 | 12.37 | 12.03 | 12.11 | 12.44 | |
| DSO | days | 55.82 | 43.38 | 53.01 | 30.64 | 32.88 | 39.93 | 41.12 | 38.57 | 36.53 | 30.75 | 31.04 | 29.60 | 32.84 | 29.55 | 28.77 | 30.85 | 29.50 | 30.35 | 30.15 | 29.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.54
= 55.82
The Days Sales Outstanding (DSO) of Cogent Communications Holdings Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the DSO increased to 52.55 days from 38.76 days in Q3 2023, indicating a deterioration in the company's accounts receivable collection efficiency. This could potentially signify potential issues with customer payments or credit policies.
Comparing Q4 2023 to Q4 2022, there has been a significant increase in DSO from 26.86 days to 52.55 days, pointing towards a lengthening of the average time it takes for the company to collect its accounts receivable. This trend suggests a need for closer monitoring of credit terms and collections processes to prevent liquidity challenges from delayed cash inflows.
Overall, the recent spike in DSO warrants attention from management to address potential underlying factors impacting the company's accounts receivable turnover and cash flow management. It would be advisable for the company to implement measures to improve collections efficiency and maintain a healthy working capital position.
Peer comparison
Dec 31, 2023