Globus Medical (GMED)

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		3.11	2.47	4.53	4.73	4.71	4.79	4.91	5.66	5.78	5.33	5.01	5.08	5.33	5.07	5.49	5.72	4.84	4.88	4.73	5.13
DSO	days	117.49	147.57	80.50	77.11	77.55	76.23	74.40	64.48	63.11	68.52	72.84	71.90	68.51	72.01	66.45	63.83	75.49	74.73	77.14	71.13

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.11
= 117.49

Days Sales Outstanding (DSO) is a measure of the average number of days a company takes to collect payment after making a sale. A higher DSO indicates that the company is taking longer to collect payments from its customers, which can negatively impact its cash flow and liquidity.

Analyzing the DSO trend for Globus Medical Inc over the past eight quarters, we can observe fluctuations in the collection period. In Q4 2023, the DSO increased to 117.11 days from 147.05 days in the previous quarter, indicating a slight improvement in the collection efficiency. However, compared to the same quarter in the previous year, there has been an increase in DSO from 76.10 days in Q4 2022.

Looking further back, we see a noticeable variation in DSO levels over the quarters, with a peak of 147.05 days in Q3 2023 and a low of 63.11 days in Q1 2022. This fluctuation may suggest inconsistencies in the company's credit and collection policies, as well as changes in customer payment behavior.

Overall, the trend in DSO for Globus Medical Inc indicates some challenges in managing its accounts receivable effectively. The company should focus on streamlining its credit control processes, improving collection practices, and monitoring customer payment patterns to reduce the DSO and enhance its cash flow position.