Godaddy Inc (GDDY)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 53.67 | 65.91 | 58.08 | 77.23 | 95.50 | |
| DSO | days | 6.80 | 5.54 | 6.28 | 4.73 | 3.82 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 53.67
= 6.80
Days Sales Outstanding (DSO) is a key indicator of how efficiently a company collects its accounts receivable. A lower DSO indicates faster collection of receivables, which can improve cash flow and overall liquidity. Looking at Godaddy Inc's DSO over the past five years, we can observe a general trend of fluctuation.
In 2019, the DSO was at its lowest at 3.69 days, suggesting that accounts were being collected efficiently. However, over the subsequent years, there was an increasing trend in DSO, with a peak at 6.57 days in 2023. This increase indicates a slower collection of accounts receivable, potentially impacting cash flow and liquidity.
It is important for Godaddy Inc to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy cash flow position. Analyzing the reasons behind the fluctuations in DSO can provide valuable insights into the company's credit policies, customer payment behaviors, and overall financial health.
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Dec 31, 2023