Heidrick & Struggles International (HSII)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.82 | 6.70 | 5.91 | 5.84 | 5.34 | |
| DSO | days | 46.67 | 54.48 | 61.78 | 62.50 | 68.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.82
= 46.67
The Days Sales Outstanding (DSO) ratio for Heidrick & Struggles International, Inc. has fluctuated over the past five years. In 2023, the DSO was 50.32 days, compared to 46.28 days in 2022. This indicates that it took the company approximately 50.32 days on average to collect its accounts receivable in 2023, a slight increase from the previous year.
The trend in DSO from 2021 to 2023 shows some variability, with a decrease from 49.57 days in 2021 to 46.28 days in 2022, followed by an increase to 50.32 days in 2023. The peak observed over this period was in 2019, with a DSO of 57.13 days.
The DSO ratio is an important indicator of a company's efficiency in collecting accounts receivable. A lower DSO generally indicates that the company is collecting payments more quickly, which is a positive sign for liquidity and cash flow. In contrast, a higher DSO could suggest potential issues with collections or extending credit terms to customers.
Heidrick & Struggles International, Inc. should continue to monitor its DSO closely to ensure efficient management of accounts receivable and maintain healthy cash flows. Further analysis and comparison with industry benchmarks could provide additional insights into the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2023