DigitalOcean Holdings Inc (DOCN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Receivables turnover | 11.14 | 10.71 | 10.82 | |
| DSO | days | 32.76 | 34.09 | 33.74 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.14
= 32.76
DigitalOcean Holdings Inc's Days of Sales Outstanding (DSO) measures how efficiently the company collects payments from customers. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
From 2021 to 2023, DigitalOcean has shown a slight improvement in its DSO performance, with the DSO decreasing from 33.74 days in 2021 to 32.76 days in 2023. This trend suggests that the company has been able to enhance its receivables management and collect payments from customers at a slightly faster pace.
Overall, the decreasing trend in DSO is a positive indicator of efficient accounts receivable management at DigitalOcean Holdings Inc. This improvement may imply better cash flow and working capital management, potentially enhancing the company's overall financial health and stability.
Peer comparison
Dec 31, 2023