Now Inc (DNOW)
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 | 6.04 | 5.83 | 5.51 | 5.32 | 5.36 | 4.98 | 4.84 | 5.11 | 5.37 | 5.08 | 5.19 | 5.62 | 8.18 | 9.10 | 9.77 | 7.57 | 7.98 | 6.60 | 6.34 | 6.14 | |
| DSO | days | 60.44 | 62.57 | 66.20 | 68.64 | 68.11 | 73.33 | 75.40 | 71.37 | 67.99 | 71.80 | 70.30 | 64.94 | 44.61 | 40.10 | 37.36 | 48.23 | 45.76 | 55.30 | 57.53 | 59.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.04
= 60.44
To analyze NOW Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe the trend of how long it takes the company to collect its accounts receivable.
1. The DSO has shown a decreasing trend from Q4 2022 to Q2 2023, reaching its lowest level at 60.39 days in Q4 2023.
2. This downward trend suggests an improvement in the company's efficiency in collecting receivables over the last few quarters.
3. The DSO peaked at 75.40 days in Q3 2022, indicating a longer period for accounts receivable collection, followed by a steady decline in subsequent quarters.
4. The company appears to have made efforts to tighten its credit policies or enhance its collection processes.
5. The current DSO of 60.39 days in Q4 2023 indicates that NOW Inc has been successful in managing its accounts receivable efficiently.
6. Monitoring DSO trends is crucial for assessing a company's cash flow management and overall financial health.
In conclusion, the decreasing trend in DSO for NOW Inc reflects positive changes in its accounts receivable management, potentially leading to improved liquidity and operational efficiency.
Peer comparison
Dec 31, 2023