Graham Holdings Co (GHC)

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		8.75	8.35	9.48	8.29	7.15	6.96	7.15	6.65	5.13	5.44	5.84	5.57	5.23	5.83	6.18	5.49	4.84	4.82	5.34	5.39
DSO	days	41.70	43.71	38.49	44.02	51.05	52.47	51.07	54.91	71.12	67.08	62.52	65.50	69.73	62.63	59.10	66.44	75.44	75.66	68.36	67.73

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.75
= 41.70

To analyze Graham Holdings Co.'s Days of Sales Outstanding (DSO) across multiple quarters, we observe fluctuations in the collection period for accounts receivable. DSO decreased steadily from 57.41 days in Q1 2022 to 40.75 days in Q2 2023, indicating an improvement in the company's ability to collect receivables more efficiently.

The trend of declining DSO over consecutive quarters suggests that Graham Holdings Co. has been managing its accounts receivable effectively, possibly by implementing stricter credit policies or enhancing collection procedures. Lower DSO signifies that the company is converting its credit sales into cash more quickly, which could improve liquidity and working capital management.

Comparing DSO to industry benchmarks or historical data can provide further insights into Graham Holdings Co.'s performance relative to its peers or over time. It is essential to monitor DSO regularly to ensure the company maintains a balance between efficient collections and maintaining good customer relationships.

Overall, the decreasing trend in DSO for Graham Holdings Co. signals improved efficiency in accounts receivable management, which can positively impact the company's cash flow and financial health.