CDW Corp (CDW)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.20 | 4.75 | 4.19 | 5.10 | 5.26 | |
| DSO | days | 86.95 | 76.85 | 87.14 | 71.60 | 69.38 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.20
= 86.95
The days of sales outstanding (DSO) for CDW Corp have fluctuated over the past five years. In 2023, the DSO stands at 86.02 days, higher than the previous year's DSO of 76.08 days. This indicates that on average, it is taking CDW Corp 86.02 days to collect its accounts receivable from customers.
Looking back further, we see that the DSO was also higher in 2021 compared to 2020, but lower in 2020 compared to 2019. The increasing trend in recent years could suggest potential difficulties in collecting receivables promptly, which could impact cash flow and liquidity for the company.
It is important for CDW Corp to monitor and manage its DSO effectively to ensure efficient cash flow management and timely collection of accounts receivable. Efforts to reduce DSO could include implementing stricter credit policies, improving collections processes, and enhancing customer relationships to expedite payments.
Peer comparison
Dec 31, 2023