Equifax Inc (EFX)
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 | 5.53 | 5.06 | 5.17 | 5.28 | 5.76 | 5.93 | 5.60 | 5.75 | 6.56 | 6.74 | 6.52 | 6.03 | 6.38 | 6.29 | 6.12 | 5.84 | 6.44 | 6.49 | 6.59 | 6.44 | |
| DSO | days | 66.03 | 72.11 | 70.58 | 69.08 | 63.41 | 61.59 | 65.20 | 63.52 | 55.61 | 54.15 | 55.98 | 60.57 | 57.22 | 58.04 | 59.63 | 62.55 | 56.70 | 56.21 | 55.35 | 56.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 66.03
Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests that the company is taking longer to receive payments.
In the case of Equifax, Inc., we observe fluctuations in the DSO over the past eight quarters. The DSO has ranged from a low of 59.57 days in Q3 2022 to a high of 68.78 days in Q3 2023. Overall, the DSO has been relatively stable around the 60-70 day range.
The increasing trend in DSO from Q3 2022 to Q3 2023 may raise some concerns as it indicates that Equifax is taking longer to collect payments from customers. This could potentially impact the company's cash flow and liquidity position if the trend continues.
It is important for Equifax to closely monitor and manage its accounts receivable to ensure timely collection of payments. Implementing strategies to improve billing and collection processes could help in reducing the DSO and enhancing the company's overall financial performance.