ExlService Holdings Inc (EXLS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.25 | 5.45 | 5.67 | 4.49 | 3.99 | |
| DSO | days | 69.46 | 67.00 | 64.38 | 81.23 | 91.39 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.25
= 69.46
The Days of Sales Outstanding (DSO) for ExlService Holdings Inc has shown a generally increasing trend from 2019 to 2023, indicating a lengthening time it takes for the company to collect its accounts receivable. In 2023, the DSO stood at 73.11 days, compared to 71.07 days in 2022, 69.03 days in 2021, 62.19 days in 2020, and 67.92 days in 2019. This upward trend may suggest potential challenges in the company's collection process or an increase in credit sales, which could impact its liquidity and working capital management. Management should focus on improving efficiency in accounts receivable collection to reduce the DSO and enhance cash flow.
Peer comparison
Dec 31, 2023