Columbia Sportswear Company (COLM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.29	6.37	6.45	5.52	6.23
DSO	days	44.01	57.33	56.62	66.09	58.57

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.29
= 44.01

Days Sales Outstanding (DSO) is a crucial financial metric that measures the average number of days it takes for a company to collect payments for sales made. Lower DSO values generally indicate that a company is better at collecting its accounts receivable promptly, while higher DSO values may suggest inefficiencies or potential issues with collecting payments.

Analyzing the DSO trend for Columbia Sportswear Co. over the past 5 years, we observe fluctuations in the collection efficiency of the company. The DSO has shown a downward trend from 2019 to 2023, indicating an improvement in the average number of days it takes for Columbia Sportswear Co. to collect payments from its customers.

In particular:
- In 2019, the DSO was relatively high at 58.57 days, suggesting delays in accounts receivable collection.
- The DSO decreased to 66.09 days in 2020, indicating further delays in collecting payments.
- The trend reversed in 2021 and 2022, with DSO values hovering around 57-58 days, reflecting relatively steady collection efficiencies.
- Notably, in 2023, the DSO decreased significantly to 44.28 days, showcasing a marked improvement in the company's ability to promptly collect payments from customers.

Overall, the decreasing trend in DSO for Columbia Sportswear Co. indicates an enhancement in the company's account receivables management efficiency over the years, potentially leading to improved cash flows and working capital management. Monitoring this trend in the future will provide insights into the company's ability to maintain or further enhance its collection processes.