Choice Hotels International Inc (CHH)

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		6.69	5.48	5.52	5.43	5.12	3.78	4.73	4.89	4.86	3.63	3.18	3.73	6.52	4.13	5.05	6.09	7.87	6.35	5.91	6.82
DSO	days	54.59	66.56	66.08	67.20	71.29	96.59	77.15	74.66	75.13	100.51	114.83	97.73	55.99	88.35	72.28	59.92	46.35	57.44	61.75	53.51

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.69
= 54.59

Choice Hotels International Inc's Days Sales Outstanding (DSO) is a metric that measures how long it takes for the company to collect its accounts receivable. A lower DSO value suggests that the company is efficient in collecting payments from customers, while a higher DSO value may indicate potential issues with accounts receivable management.

Analyzing the trend in Choice Hotels' DSO over the past few quarters, we observe fluctuations in the values. In the most recent quarter of December 31, 2023, the DSO stood at 54.59 days, which is a decrease from the previous quarter's DSO of 66.56 days. This suggests an improvement in the company's efficiency in collecting payments from customers.

Looking further back, we see some variability in DSO values with occasional spikes, such as in September 30, 2021, and June 30, 2021, where DSO values exceeded 100 days. These spikes may indicate challenges in accounts receivable collection during those periods.

Overall, it is essential for Choice Hotels International Inc to actively monitor and manage its DSO to ensure effective cash flow management and timely collection of receivables. By reducing DSO, the company can improve liquidity and potentially enhance its overall financial performance.