Envestnet Inc (ENV)

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		9.76	10.25	9.66	9.81	11.79	12.36	15.04	13.37	12.12	9.28	12.62	12.16	11.84	12.40	12.41	11.42	12.66	13.44	11.77	12.35
DSO	days	37.38	35.62	37.77	37.19	30.97	29.52	24.27	27.30	30.13	39.32	28.92	30.01	30.83	29.43	29.41	31.95	28.83	27.17	31.02	29.56

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.76
= 37.38

Envestnet Inc.'s Days of Sales Outstanding (DSO) has shown some fluctuations over the past eight quarters. The DSO metric measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally considered positive.

In Q4 2023, the DSO increased to 39.45 days from 36.37 days in Q3 2023, which suggests a slowdown in collecting payments compared to the previous quarter. This could signal potential issues with accounts receivable management or customer payment behavior.

Looking at the trend over the past year, the DSO has been generally increasing since Q1 2022 when it was at 27.94 days. This consistent upward trend may raise concerns about the company's ability to efficiently collect payments and manage its receivables. It is important for Envestnet Inc. to address this trend to ensure healthy cash flow and liquidity management.

Comparing the recent DSO figures to Q4 2022 when it was at 32.30 days, there has been a noticeable increase, indicating a potential deterioration in the company's collection efficiency.

Overall, Envestnet Inc. should closely monitor its DSO metric, identify the root causes of any increases, and implement strategies to improve collections and reduce the number of days it takes to receive payments from customers. This could help enhance the company's financial health and operational performance in the long run.