FTI Consulting Inc (FCN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.22 | 2.38 | 2.59 | 2.39 | 1.98 | |
| DSO | days | 164.20 | 153.11 | 140.75 | 152.52 | 184.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.22
= 164.20
Days Sales Outstanding (DSO) is a key metric used to assess a company's accounts receivable management efficiency. It indicates the average number of days it takes for a company to collect revenue after making a sale. A higher DSO value suggests slower collections and potential liquidity problems, whereas a lower value indicates efficient collections.
Analyzing FTI Consulting Inc.'s DSO over the past five years, a trend emerges. The DSO increased from 114.28 days in 2019 to 120.11 days in 2023, with fluctuations in between. This upward trend indicates a potential issue with the company's accounts receivable management efficiency, as it is taking longer to collect revenue from its clients over time.
Comparing FTI Consulting's DSO to industry benchmarks or its competitors can provide further insights into its performance in this area. It is important for the company to closely monitor and manage its DSO to ensure timely collections and maintain healthy cash flows. Additionally, strategies such as improving invoicing processes, tightening credit terms, and enhancing collection efforts may help reduce DSO and enhance overall financial health.
Peer comparison
Dec 31, 2023