Etsy Inc (ETSY)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 111.12 | 92.01 | 85.42 | 76.34 | 53.19 | |
| DSO | days | 3.28 | 3.97 | 4.27 | 4.78 | 6.86 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 111.12
= 3.28
The Days of Sales Outstanding (DSO) for Etsy Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
In 2019, the DSO stood at 6.86 days, and this figure has gradually declined to 3.28 days by the end of 2023. This reduction implies that Etsy is collecting payments from its customers at a faster pace, which could positively impact its cash flow and working capital management.
A lower DSO suggests that the company is effectively managing its credit policies and receivables collection process, potentially reducing the risk of bad debts and improving overall liquidity. The consistent improvement in DSO over the years reflects positively on Etsy's financial health and operational efficiency.
Peer comparison
Dec 31, 2023