PC Connection Inc (CNXN)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 4.65 | 5.87 | 5.47 | 6.24 | |
| DSO | days | 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 | 78.46 | 62.14 | 66.68 | 58.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.29
= 85.04
To analyze PC Connection, Inc.'s Days Sales Outstanding (DSO) trend, we observe a fluctuation in DSO over the past eight quarters. In Q4 2023, the DSO increased to 78.26 days compared to the previous quarter's DSO of 75.23 days. This suggests that the company took longer to collect its accounts receivable in Q4 2023.
Looking back to Q1 2022, the DSO was at 76.04 days, indicating a relatively consistent performance in collecting receivables at the beginning of the period under review. However, there was an improvement in the following quarters until Q4 2022, where the DSO decreased to 71.28 days, implying a more efficient receivables collection process.
The DSO trend then showed an increasing pattern from Q1 2023 to Q4 2023, signaling a potential delay in collecting payments from customers during these periods. This trend warrants further investigation into the company's accounts receivable management practices and the credit policies in place.
Overall, monitoring the DSO trend provides insights into how efficiently PC Connection, Inc. is managing its accounts receivable and collecting payments from customers, which is crucial for the company's cash flow management and overall financial health.
Peer comparison
Dec 31, 2023