Genpact Limited (G)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.97 | 3.99 | 4.38 | 4.52 | 4.20 | |
| DSO | days | 92.02 | 91.42 | 83.34 | 80.81 | 86.95 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.97
= 92.02
Genpact Limited's Days Sales Outstanding (DSO) has exhibited fluctuations over the past five years. The DSO decreased from 86.95 days on December 31, 2020, to 80.81 days on December 31, 2021, indicating an improvement in the company's ability to collect its accounts receivable more efficiently. However, the DSO increased slightly to 83.34 days on December 31, 2022, before witnessing a more notable rise to 91.42 days on December 31, 2023, and further to 92.02 days on December 31, 2024.
The upward trend in DSO figures from 2022 indicates a potential delay in collecting receivables, which could be a cause for concern as it may impact the company's cash flow and working capital management. It is essential for Genpact Limited to monitor and potentially improve its accounts receivable collection processes to bring down the DSO figures and enhance its liquidity position.
Peer comparison
Dec 31, 2024