PC Connection Inc (CNXN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.17 | 4.29 | 4.68 | 4.42 | 3.82 | |
| DSO | days | 87.55 | 85.04 | 78.00 | 82.67 | 95.49 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.17
= 87.55
PC Connection Inc's Days of Sales Outstanding (DSO) has shown a general trend of improvement over the past five years, indicating effective management of accounts receivable.
The company's DSO decreased from 95.49 days as of December 31, 2020, to 82.67 days as of December 31, 2021, suggesting a more efficient collection of receivables. This continued into December 31, 2022, where the DSO dropped further to 78.00 days, demonstrating a consistent effort to shorten the collection period.
However, there was a slight increase in DSO to 85.04 days as of December 31, 2023, which may indicate a temporary slowdown in collections or changes in credit terms. Despite this, the DSO remained below the initial level of 95.49 days in 2020.
In the most recent period ending December 31, 2024, the DSO increased slightly again to 87.55 days. It is important to monitor this trend to ensure that the company's accounts receivable management remains effective and does not deteriorate significantly.
Overall, PC Connection Inc's decreasing DSO over the years reflects a positive trend in managing receivables efficiently, but the recent uptick in DSO warrants further attention to prevent any adverse impact on cash flow and liquidity.
Peer comparison
Dec 31, 2024