IAC Inc. (IAC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 8.13 | 8.61 | 5.34 | 10.22 | |
| DSO | days | 44.87 | 42.38 | 68.39 | 35.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.13
= 44.87
From the data provided, we can observe the days of sales outstanding (DSO) for IAC Inc. over the past four years.
In 2023, the DSO stood at 44.87 days, indicating that on average, it took the company approximately 44.87 days to collect its accounts receivable. This represents a slight increase from the prior year's DSO of 42.38 days.
Looking back at 2021, the DSO was notably higher at 68.39 days, suggesting that the company took a longer time to convert its credit sales into cash receipts compared to more recent years.
In contrast, in 2020, the DSO was at its lowest at 35.71 days, reflecting a more efficient collection process where the company managed to convert its accounts receivable into cash quicker than in subsequent years.
Overall, fluctuations in the DSO figures can indicate changes in the company's credit policies, customer payment behavior, or the efficiency of its account receivables management. It is crucial for IAC Inc. to closely monitor and manage its DSO in order to optimize cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023