PC Connection Inc (CNXN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.29 | 4.68 | 4.42 | 3.82 | 4.65 | |
| DSO | days | 85.04 | 78.00 | 82.67 | 95.49 | 78.47 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.29
= 85.04
To analyze PC Connection Inc's Days Sales Outstanding (DSO) over the past five years:
1. The company's DSO for December 31, 2023, was 85.04 days, showing an increase compared to the previous year's 78.00 days.
2. This rise in DSO indicates that PC Connection Inc took longer to collect its accounts receivables in 2023, which may suggest potential issues with the company's credit policies or the ability of its customers to pay promptly.
3. Examining the trend over the last five years, we observe fluctuations in DSO, with the highest being 95.49 days in 2020 and the lowest at 78.00 days in 2022 and 2019.
4. The significant increase in DSO in 2020 could signal difficulties in collecting payments, possibly due to economic challenges or changes in customer behaviors during that period.
5. The consistency of DSO around 78 days in 2019 and 2022 may indicate a level of efficiency in accounts receivable management during those years.
Overall, while fluctuations in DSO can provide insights into a company's revenue collection efficiency and potential credit risks, it is essential to delve deeper into the factors contributing to these changes to assess the overall financial health of PC Connection Inc.
Peer comparison
Dec 31, 2023