Concentrix Corporation (CNXC)

Days of sales outstanding (DSO)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Receivables turnover		3.77	4.55	4.63
DSO	days	96.90	80.25	78.92

November 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.77
= 96.90

To analyze Concentrix Corp.'s days of sales outstanding (DSO) over the past five years, we can see that there has been some fluctuation in the DSO ratio. DSO represents the average number of days it takes for a company to collect payment after making a sale.

In 2019, the DSO was at 78.79 days, indicating that on average, it took the company approximately 78.79 days to collect payment for its sales. This number increased to 83.64 days in 2020 before decreasing to 78.92 days in 2021. However, in 2022, DSO saw a significant increase to 80.25 days, and further climbed to 96.90 days in 2023.

The rising trend in the DSO ratio may indicate potential issues with the company's accounts receivable management and collection procedures. A higher DSO could suggest that Concentrix Corp. is taking longer to collect payments from its customers, which may impact its cash flow and liquidity. It would be prudent for the company to assess its credit policies and payment terms, as well as strengthen its collections efforts to shorten the DSO and improve cash flow efficiency.