Genpact Limited (G)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.97 | 3.83 | 3.95 | 3.93 | 3.99 | 4.18 | 4.36 | 4.35 | 4.38 | 4.35 | 4.17 | 4.25 | 4.52 | 4.08 | 4.15 | 4.20 | 4.20 | 4.29 | 4.19 | 3.97 | |
| DSO | days | 92.02 | 95.21 | 92.50 | 92.97 | 91.42 | 87.24 | 83.77 | 83.84 | 83.34 | 83.87 | 87.47 | 85.81 | 80.81 | 89.41 | 87.96 | 86.97 | 86.95 | 85.07 | 87.20 | 91.94 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.97
= 92.02
The Days Sales Outstanding (DSO) is a key ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is able to collect payments more quickly, which is generally preferable as it improves liquidity and cash flow.
Analyzing the DSO trend of Genpact Limited from March 31, 2020, to December 31, 2024, shows some fluctuations over the period. The DSO decreased from 91.94 days on March 31, 2020, to a low of 80.81 days on December 31, 2021, before increasing slightly to 92.97 days on March 31, 2024. This suggests that there may have been improved efficiency in collecting payments initially, followed by a slight deterioration in collection performance.
The DSO figure fluctuated within a range of around 80 to 95 days, indicating that Genpact Limited's accounts receivable management may have experienced some variability in effectiveness over the years analyzed. It is essential for the company to monitor and manage its DSO to ensure timely collection of receivables and optimize cash flow.
Overall, although the DSO has shown fluctuations, it is important for Genpact Limited to aim for a consistent and ideally decreasing trend in this ratio to indicate efficient management of accounts receivable and strong financial performance.
Peer comparison
Dec 31, 2024