Certara Inc (CERT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.90 | 4.35 | 3.97 | 3.97 | 3.88 | 4.13 | 4.07 | 3.92 | 3.88 | ||||
| DSO | days | 93.67 | 83.87 | 92.03 | 91.96 | 94.08 | 88.31 | 89.77 | 93.05 | 94.13 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.90
= 93.67
Certara Inc's Days Sales Outstanding (DSO) is a measure of how long it takes the company to collect payment after making a sale. Looking at the data provided, we can observe that there has been some fluctuation in DSO over the past eight quarters.
In Q4 2023, the DSO stood at 90.91 days, which is higher compared to the previous quarter Q3 2023 with 81.04 days. This increase suggests a potential delay in collecting payments from customers, which could strain the company's cash flow.
Comparing Q4 2023 to the same period last year, Q4 2022, where DSO was 92.00 days, we see a slight improvement. However, it is essential to note that DSO should ideally be lower to indicate that the company is efficiently managing receivables.
On average, Certara Inc's DSO over the past eight quarters is around 89.21 days. This indicates that, on average, it takes the company roughly 89 days to collect payment for sales made.
Overall, while there have been fluctuations in DSO, it is crucial for Certara Inc to closely monitor and potentially work on improving its collection processes to reduce DSO and enhance its cash flow position.
Peer comparison
Dec 31, 2023