Frontdoor Inc (FTDR)
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 | 296.67 | 250.57 | 285.67 | 279.67 | 332.40 | 415.25 | 274.67 | 324.60 | 228.71 | 317.00 | 310.80 | 377.25 | 294.80 | 145.10 | 157.56 | 173.62 | 124.18 | 168.12 | 146.11 | ||
| DSO | days | 1.23 | 1.46 | 1.28 | 1.31 | 1.10 | 0.88 | 1.33 | 1.12 | 1.60 | 1.15 | 1.17 | 0.97 | 1.24 | 2.52 | 2.32 | 2.10 | 2.94 | 2.17 | 2.50 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 296.67
= 1.23
Days of Sales Outstanding (DSO) is a key metric used to evaluate the efficiency of a company's accounts receivable management. It 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 seen as a positive sign.
In the case of Frontdoor Inc., the DSO has exhibited some variability over the past eight quarters. In Q4 2022, the DSO was at its lowest level of 0.88 days, indicating that the company was able to collect payments very quickly during that period. However, in Q3 2023, the DSO increased to 1.46 days, the highest level in the data set, suggesting a potential delay in collecting payments.
Overall, Frontdoor Inc. has generally maintained relatively low DSO levels, with most quarters falling between 1.10 and 1.33 days. This suggests that the company has been efficient in collecting payments from customers. However, the increase in DSO in Q3 2023 may warrant further investigation to determine the underlying reasons for the delay in receiving payments and to ensure that efficient accounts receivable management practices are maintained in the future.
Peer comparison
Dec 31, 2023