Cognizant Technology Solutions Corp Class A (CTSH)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.03	5.12	5.20	5.39	5.15
DSO	days	72.59	71.32	70.15	67.66	70.81

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.03
= 72.59

The days of sales outstanding (DSO) measure for Cognizant Technology Solutions Corp. has shown a slight increasing trend over the past five years. As of December 31, 2023, the DSO stood at 72.59 days, compared to 71.32 days in 2022, 70.15 days in 2021, 67.66 days in 2020, and 70.81 days in 2019.

This indicates that the company is taking longer to collect its accounts receivable, which could potentially signify challenges in managing its cash flow efficiently. A higher DSO could imply that the company is granting extended credit terms to customers or facing difficulties in collecting payments promptly. It is essential for the company to monitor and manage its DSO effectively to ensure prompt collection of receivables and maintain healthy liquidity levels.