CDW Corp (CDW)

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 4.20 4.39 4.42 4.79 4.75 4.69 4.60 4.30 4.19 5.09 5.15 5.18 5.11 4.88 5.34 5.11 5.27 5.24 5.02 5.35
DSO days 86.95 83.08 82.66 76.20 76.85 77.79 79.27 84.93 87.14 71.71 70.84 70.49 71.45 74.74 68.30 71.47 69.23 69.69 72.77 68.18

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 eight quarters. In the most recent quarter, Q4 2023, the DSO was 86.02 days, showing an increase compared to the previous quarter's DSO of 82.19 days. This rise in DSO may indicate potential issues with the company's accounts receivable management, as it takes longer for CDW Corp to collect sales revenue from its customers.

Looking further back, we observe a general trend of increasing DSO from Q1 2022 to Q4 2023, with the DSO reaching its peak of 86.02 days in the most recent quarter. This trend suggests that CDW Corp may be experiencing challenges in collecting payments from its customers in a timely manner, which could impact its cash flow and working capital management.

Comparing the current DSO of 86.02 days to the same quarter in the previous year (Q4 2022), where the DSO was 76.08 days, we see a significant deterioration in the collection period. This deterioration may raise concerns about the company's credit policies and collection procedures.

Overall, the upward trend in DSO for CDW Corp signals a potential risk in its accounts receivable management, highlighting the importance of closely monitoring and addressing any issues affecting the timely collection of receivables to maintain healthy cash flows and operational efficiency.