Consolidated Communications (CNSL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.07	9.88	9.36	9.27	11.12
DSO	days	40.26	36.94	38.99	39.36	32.83

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.07
= 40.26

Days Sales Outstanding (DSO) is a crucial ratio that indicates how efficiently a company collects its accounts receivable. A lower DSO value signifies that the company is collecting payments from customers more quickly, while a higher DSO may indicate potential issues with collecting payments promptly.

Consolidated Communications Holdings Inc's DSO has shown a fluctuating trend over the past five years. In 2019, the company had a DSO of 33.50 days, which increased to 38.83 days in 2020, indicating a slight deterioration in receivables collection efficiency. However, the DSO improved in 2021 to 38.29 days before further decreasing to 37.18 days in 2022.

In the most recent period ending December 31, 2023, Consolidated Communications Holdings Inc's DSO increased to 40.79 days. This uptick may suggest a slower collection of accounts receivable compared to the previous year. It is essential for the company to analyze the reasons behind this increase in DSO to ensure efficient management of accounts receivable and maintain healthy cash flows.

Overall, while the company's DSO has varied over the years, attention should be paid to improving the efficiency of collecting receivables to enhance liquidity and overall financial health. Further investigation into customer payment behaviors and credit policies may help in addressing any potential issues affecting the DSO metric.