PC Connection Inc (CNXN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.18 | 4.72 | 4.54 | 5.20 | 4.29 | 4.85 | 4.93 | 4.93 | 4.68 | 4.94 | 4.92 | 4.80 | 4.42 | 4.73 | 4.59 | 4.53 | 3.82 | 4.47 | 6.06 | 5.96 | |
| DSO | days | 87.41 | 77.31 | 80.34 | 70.18 | 85.04 | 75.25 | 73.97 | 74.08 | 78.00 | 73.93 | 74.18 | 76.04 | 82.67 | 77.19 | 79.53 | 80.49 | 95.49 | 81.70 | 60.21 | 61.28 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.18
= 87.41
The days of sales outstanding (DSO) ratio for PC Connection Inc has shown some fluctuations over the observed period. DSO represents the average number of days it takes for a company to collect payment after making a sale.
From March 31, 2020, to December 31, 2024, the DSO ranged between a low of 60.21 days to a high of 95.49 days. The DSO decreased from March 31, 2020 (61.28 days) to June 30, 2020 (60.21 days), indicating an improvement in the company's collection efficiency. However, from September 30, 2020 (81.70 days) to December 31, 2020 (95.49 days), the DSO increased significantly, suggesting potential issues with accounts receivable management.
Subsequently, the DSO improved from March 31, 2021 (80.49 days) to June 30, 2021 (79.53 days), before showing a declining trend from September 30, 2021 (77.19 days) to December 31, 2021 (82.67 days). The DSO continued to decline until June 30, 2022 (74.18 days) with minor fluctuations in the following quarters.
Overall, the DSO ratio indicates the company's effectiveness in managing its accounts receivable, with lower values being more favorable as they suggest faster collections. The management should continue to monitor and improve collections processes to ensure timely receipt of payments and maintain healthy cash flows.
Peer comparison
Dec 31, 2024