Genpact Limited (G)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.99 | 4.38 | 4.52 | 4.20 | 3.83 | |
| DSO | days | 91.42 | 83.34 | 80.81 | 86.95 | 95.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.99
= 91.42
Days Sales Outstanding (DSO) is a key efficiency ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates faster collections and better cash flow management.
Analyzing the trend in Genpact Ltd's DSO over the past five years, we observe the following:
- In 2023, the DSO increased to 91.01 days from 83.06 days in 2022, indicating that the company took longer to collect payments from customers.
- The DSO was lowest in 2021 at 80.56 days, suggesting efficient collections processes.
- In 2020, the DSO was 86.69 days, showing a slight increase compared to 2019.
- The highest DSO was recorded in 2019 at 94.79 days, indicating a longer collection period.
Overall, the increase in DSO in 2023 compared to the previous year may raise concerns about the company's ability to collect payments promptly. It is important for Genpact Ltd to assess its credit policies, customer payment terms, and collection procedures to improve its DSO and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2023