Equifax Inc (EFX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.53 | 5.76 | 6.56 | 6.31 | 6.38 | |
| DSO | days | 66.03 | 63.41 | 55.61 | 57.85 | 57.24 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 66.03
Equifax, Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after a sale is made.
Over the five-year period from 2019 to 2023, Equifax's DSO has fluctuated, ranging from a low of 53.94 days in 2021 to a high of 62.96 days in 2023.
The lower DSO in 2021 indicates that Equifax improved its collection efficiency, as it took fewer days to collect payments from customers. However, the increase in DSO in 2023 suggests a possible delay in collecting payments, which may have negative implications for the company's cash flow and liquidity.
Overall, Equifax's management should closely monitor the DSO trend to ensure efficient credit and collection practices, as a high DSO can tie up working capital and potentially indicate issues with customer creditworthiness or billing processes.