Envestnet Inc (ENV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.77	11.82	12.12	11.84	12.49
DSO	days	37.37	30.89	30.13	30.83	29.22

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.77
= 37.37

The days of sales outstanding (DSO) for Envestnet Inc. have shown a fluctuating trend over the past five years. In 2023, the DSO increased to 39.45 days compared to the previous year's 32.30 days. This indicates that it took longer for the company to collect its accounts receivable in 2023.

However, when looking at a longer-term trend, we observe that the DSO has generally been within a relatively narrow range over the past five years, fluctuating between 29.75 days in 2019 and 39.45 days in 2023. This consistency suggests that Envestnet Inc. has been effective in managing its accounts receivable turnover, with only moderate variations in the time it takes to collect receivables.

While the increase in DSO in 2023 may raise some concerns about the company's receivables management efficiency, it is important to consider additional factors such as industry norms and company-specific circumstances before drawing conclusions about Envestnet's financial health. Further analysis of cash flow, sales growth rates, and overall profitability would provide a more comprehensive understanding of the company's financial performance.