Godaddy Inc (GDDY)

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		53.67	53.75	59.81	58.08	65.91	61.68	64.07	63.52	58.08	55.69	63.03	68.94	77.23	81.68	92.17	94.66	96.20	97.26	110.35	75.22
DSO	days	6.80	6.79	6.10	6.28	5.54	5.92	5.70	5.75	6.28	6.55	5.79	5.29	4.73	4.47	3.96	3.86	3.79	3.75	3.31	4.85

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 53.67
= 6.80

To analyze Godaddy Inc's Days Sales Outstanding (DSO), we observe a trend of fluctuating DSO values over the past eight quarters. The DSO represents the average number of days it takes for a company to collect payment after making a sale.

In Q4 2022, the DSO stood at 5.36 days, indicating that Godaddy collected its sales revenues relatively quickly. Subsequently, DSO increased to 5.74 days in Q3 2022 but decreased again to 5.52 days in Q2 2022 and 5.56 days in Q1 2022.

Moving into 2023, there was a slight increase in DSO to 6.08 days in Q1 2023. This was followed by a decrease to 5.90 days in Q2 2023, and further reductions in Q3 2023 and Q4 2023, which recorded DSO values of 6.55 days and 6.57 days, respectively.

Overall, the trend in DSO indicates that Godaddy has been able to efficiently manage its accounts receivable collection process, with DSO values remaining relatively low and stable, suggesting effective credit management strategies. However, the slight increase in DSO in the latest quarters may indicate a potential slowdown in collections that could be worth monitoring in the future.